HPCL skids after dismal Q1 earnings

Hindustan Petroleum Corporation (HPCL) tumbled 4.55% to Rs 239.30 after the company reported a standalone net loss of Rs 10,196.94 crore in Q1 FY23 as against a net profit of Rs 1,795 crore recorded in Q1 FY22.

Net sales (excluding Excise Duty) surged 58.1% to Rs 114,079.76 crore in Q1 FY23 from Rs 72,166.39 crore posted in the corresponding quarter previous year.

The company reported a pre tax loss of Rs 13,581.97 crore in the first quarter as compared to a profit before tax of Rs 2,396.85 crore reported in Q1 FY22.

Total expenses spiked 78.62% to Rs 135,370.49 crore in Q1 FY23 over Q1 FY22. The company reported cost of materials consumed of Rs 33,706.71 crore in Q1 FY23, steeply higher than Rs 10,732.77 crore in reported in Q1 FY22.

Average Gross Refining Margin (GRM) during the quarter ended 30 June 2022 was $16.69 per bbl as against $3.31 per bbl recorded in the same period last year. During the current quarter, due to erosion in the marketing margins on Motor Fuels and LPG, the profitability is adversely impacted.

Crude throughput soared 91.63% to 4.81 million metric tonnes (MMT) in Q1 FY23 from 2.51 MMT in Q1 FY22. The company achieved domestic sales of 10.45 MMT during the first quarter, recording a growth of 23.67% as compared to 8.45 MMT posted in the same period last year.

The company reported a negative operating margin of 11.19% in Q1 FY23 from positive operating margin of 2.65% in Q1 FY22. Meanwhile, the company's debt to equity ratio stood at 1.68 times as of 30 June 2022 from 0.95 times as of 30 June 2021.

Meanwhile, the company's board has approved the proposal for seeking approval of the members of the company at the ensuing Annual General Meeting of the company, for increase in the borrowing limits of the company from existing Rs 30,000 crore in excess of aggregate of the paid-up share capital and free reserves of the company to Rs 50,000 crore in excess of the aggregate of the paid-up share capital and free reserves of the company, apart from temporary loans obtained from the company's bankers in the ordinary course of business and for creation of charge/provision of security on the said borrowing.

HPCL is engaged in the business of refining of crude oil and marketing of petroleum products. It operates through two segments: downstream, and exploration and production of hydrocarbons. As on 30 June 2022, ONGC held 54.90% in HPCL.

Powered by Capital Market - Live News