With delay in fuel price rise and government subsidy, Hindustan Petroleum Corporation Ltd (HPCL) posted a net loss of Rs 1,884.29 crore for the first quarter against a net profit for the corresponding previous quarter of 2009-10.
The company’s gross refining margin for the quarter also fell to $3.72 a barrel, compared to $5.71 for the April-June 2009 period. “The loss is on account of no subsidy from the government for this quarter. We expect to receive our subsidy share during the second quarter,” said a senior executive from HPCL. HPCL’s net revenue grew 21 per cent to Rs 29,219.87 crore from the Rs 24,197.58 crore last year.
“The loss during the quarter is primarily on account of absorption of underrecoveries on sale of sensitive petroleum products amounting to Rs 2,939 crore. The interest cost for the period was, however, lower at Rs 197 crore, compared to Rs 270 crore during the same period of previous year. The decrease in interest cost was due to effective treasury management, as also liquidity in the market,” the company said in a press statement.
HPCL had to bear a subsidy burden of Rs151.09 crore compared with Rs141.25 crore in the April-June 2009. The HPCL scrip ended at Rs 435.70, down 1.06 per cent on the Bombay Stock Exchange.