HPCL posts 30% jump in profit in June quarter, declares 2:1 bonus issue
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Mumbai: Hindustan Petroleum Corp. Ltd (HPCL) on Monday reported a 30% increase in net profit to Rs.2,098.38 crore for the fiscal first quarter. The company’s net profit rose from Rs.1,614.13 crore in the year-ago period.
During the quarter, net revenue fell 5.7% to Rs.51,661.04 crore from Rs.54,822 crore in the same quarter last year.
Earnings before interest, tax, depreciation and amortization (Ebitda), a measure of operating profitability, rose 17% year-on-year to Rs.3,626.8 crore and the operating margin expanded by 130 basis points to 7% in June quarter. One basis point is 0.01 percentage point.
Gross refining margin (GRM), the difference between the per-barrel price of crude and the value of petroleum products extracted from it, fell to $6.83 a barrel during the quarter from $8.56 a barrel a year ago. HPCL said crude throughput increased 19.5% year-on-year to 4.48 million metric tonnes (mmt).
The HPCL board recommended issue of bonus shares in the ratio of two shares for every one share held. The board members also approved expansion of Vizag refinery to 300,000 barrels per day at an investment of Rs.20,928 crore.
“The increase in profit is primarily on account of growth in volumes, stable refining margin and inventory gains,” HPCL said in a press statement.