Financial Insights

HPCL Q3 results: 43% decline in consolidated net profits

State owned oil-retailer HPCL reported a fall in consolidated profits of 43% YoY at Rs 1,353 crores. Moreover, the company posted a 63.1% YoY fall in standalone profits at Rs 868.86 crores. The main reason for loss of profits was stated to be the price fluctuations which led to great inventory losses. The company had posted a profit of Rs 2,373.71 crores last year in the quarter ending on December 2021.

“The stabilization phase of some of the units at Mumbai Refinery after the revamp shutdown also constrained, to some extent, the full value realization of the improving GRMs (gross refining margins),” said HPCL in a statement.

The company’s consolidated revenue grew 33.56% to reach Rs 1,03,488.75 crores while its standalone revenues grew 33.6% at Rs 77412.68 crores. Average gross refining margin during the 9 months ended on December 2021 rose to $4.50 per barrel against $2.35 per barrel for the same period last year. For the first time ever, the company managed to surpass the Rs 1,00,000 crore sales figure in a quarter. Its sales quantity rose to 10.54 metric tonnes in the quarter.

After the disappointing results, the share saw a selling pressure as it witnessed a full gap-down opening and fell over 5% on Tuesday.

Highlight by Aman Agarwal.

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