State-run Hindustan Petroleum Corporation (HPCL) posted a 53 per cent drop in net profit for the first quarter of the financial year 2019-20 to Rs 811 crore compared to Rs 1,719.2 crore during the April to June period a year ago owing to decline in refining margin and inventory losses.
However, gross sales for the first quarter saw an increase of 2.2 per cent to Rs 74,530 as compared to Rs 72,923 crore during the corresponding quarter of the previous year. The combined gross refining margin (GRM) during Q1FY20 came in at $0.75 a barrel as compared to $ 7.15 a barrel during the corresponding period of the previous financial year.
“During the quarter, there was a sharp decline in crude oil prices. On the other hand, the lower gross refining margin was due to planned shutdown in some refineries – including the Mumbai refinery,” said M K Surana, chairman and managing director of HPCL.
