State-run Hindustan Petroleum Corporation Ltd (HPCL) posted an increase of 70% in its net profit, helped by inventory gain and rupee appreciation that offset a dip in refinery margins.
Net profit came in at ₹2,969.92 crore during the fourth quarter of the fiscal year 2019 against ₹1,747.89 during the corresponding period previous year, the company said in a filing to the BSE.
Total income came in at ₹73,672.50 crore for the quarter against ₹66,983.38 crore during the corresponding previous quarter.
Other expenses for the fiscal year includes ₹578.92 crore towards loss on account of foreign currency transactions and translations. During fiscal 2018, the company recorded a gain of ₹322.39 crore on account of foreign currency transactions.
The company recorded an average gross refining margin of $5.01 per barrel against $7.40 per barrel during the corresponding previous year.
During the quarter, Singapore gross refining margins (GRMs) averaged at $3.2 per barrel for the fourth quarter, declining 25% quarter-on-quarter due to a crash in light distillate cracks.
Average Dated Brent price fell 7% quarter-on-quarter at $63.1 per barrel in Q4. However, toward the second half, prices moved up due to Iranian/Venezuelan sanctions and OPEC cuts, and between the quarter ends, closed $14 per barrel higher, implying inventory gains for refiners.
The board recommended an interim dividend of ₹6.50 per equity share and a final dividend of ₹9.40 per equity share.
HPCL's scrip closed at ₹293.60 a piece, up 6.78% on the BSE.