State-run Hindustan Petroleum Corporation (HPCL) reported a net profit of Rs 10,663.9 crore on a standalone basis for the fiscal ended March 31, which is 304 per cent higher than the profit posted a year ago. This is the highest annual profit ever reported by the oil refining and marketing company.
HPCL reported its annual results a day after Indian Oil Corporation reported its all-time high annual net profit of Rs 21,836 crore. HPCL attributed the rise in profit to “improvement in refinery margins helped by inventory gains and favourable exchange rate variations”.
HPCL’s profit in Q4FY21 was Rs 3,018 crore as compared to Rs 27 crore for the same quarter last year. Revenue from sales in the quarter increased 19 per cent y-o-y to Rs 84,905, crore, while expenses was up annually by 11 per cent to Rs 81,680 crore in the same period.
While revenue fell 5.6 per cent year-on-year (y-o-y) in FY21 to Rs 2.73 lakh crore, expenses — comprising mostly of crude oil purchase — fell at a sharper rate of 9.7 per cent to Rs 2.59 lakh crore. As retail prices of petroleum products are mapped with international rates, rise of global oil prices during FY21 meant that by the time HPCL sold its products after processing crude, retail rates had increased. HPCL’s inventory gains in FY21 was Rs 5,351 crore against an inventory loss of Rs 1,293 crore in FY20.
During the year, domestic sales of HPCL’s petroleum products fell 6.6 per cent annually to 35.2 million tonnes. Domestic consumption of petroleum products in FY21 fell 9.1 per cent y-o-y to 194.7 million tonnes across the country.
The oil refining and marketing company had announced the buyback of 10 crore equity shares — representing 6.56 per cent equity stake — at Rs 250 per share in November, 2020.