State-run Hindustan Petroleum Corporation (HPCL) reported a net profit of Rs 2,813.8 crore on a standalone basis for the three months ended June 30, recording a 246.9% rise from the same period a year ago. The oil refining and marketing company attributed the rise in profit to higher capacity utilisation of its refineries and higher sales of LPG and other high margin products as it processed more crude oil purchased at lower rates.
While revenue fell 38.1% year-on-year (y-o-y) in Q1FY21 to Rs 46,670.1 crore, expenses—comprising mostly of crude oil—dropped by a sharper 42.1% to Rs 42,941.7 crore. “Instead of storing crude we stored more refined products, lowering our inventory losses,” said HPCL chairman Mukesh Kumar Surana. The inventory gain in the quarter was Rs 536 crore against losses of Rs 633 crore in the corresponding period a year ago.
