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Hindustan Petroleum Corporation (HPCL) is back in the black with a robust Rs. 6,765-crore net profit during the first quarter (April-June) of FY24.
The public sector oil marketing company (OMC) had registered a loss of Rs. 8,557.1 crore in the same quarter a year ago.
On a sequential basis, net profit shot up 87 per cent from Rs. 3,608.3 crore in Q4FY23. The sharp sequential improvement in earnings is driven by further recovery in auto-fuel marketing margins and lower crude costs.
However, income from sale of products remained 2 per cent lower at Rs. 1.18 trillion, as compared to Q4 FY23. This was due to lower gross refining margins (GRM) in the latest quarter.
GRM is the amount that refiners earn from turning every barrel of crude oil into refined fuel products. HPCL said GRM fell to $7.44 a barrel in Q1FY24 against $16.69 per barrel in Q1FY23.
Lower GRMs have worried all OMCs as the benchmark Singapore GRM averaged at a lower $4.1 per barrel in Q1 FY24, down from $8.2 a barrel in Q4FY23.
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However, the situation is improving. On a quarter-on-quarter (QoQ) basis, HPCL’s income from sale of products was up 4 per cent.
Revenue from other business activities rose 84 per cent to Rs. 627 crore for the quarter under review. It was Rs. 339 crore during the same quarter of the previous year.
The company said it has earned Rs. 131.48 crore towards gain on account of foreign currency transactions and translations.
