Hindustan Petroleum Corporation (HPCL), a state-owned oil retailer, reported a standalone net loss of Rs 2,172 crore on November 3 compared to a loss of Rs 10,197 crore in the quarter ending in June.
In the identical quarter of the previous fiscal year, the company reported a profit of Rs 1,923 crore.
Revenue for the company fell 5.3 percent sequentially during the quarter to Rs. 1.08 lakh crore from Rs. 1.14 lakh crore in the June quarter. On the other hand, revenue increased 30% year over year.
“OMCs are likely to report huge losses for the 2nd consecutive quarter due to continued high marketing under-recoveries, normalisation of refining margin, and huge inventory losses,” JM Financial had said in a preview note.
According to the company, the Government of India has granted a one-time grant of Rs 5,617 crore to make up for under-recoveries on domestic LPG sales made during the financial year 2021–22 and the present period, which were duly recognised in July–September 2022.
For the period of April through September 2022, the average gross refining margin (GRM) was $12.62 per barrel, compared to $2.87/bbl for the same period in 2017. The corporation said that this is before Special Additional Excise Duty is taken into account.
On the NSE, the stock fell 1.84 percent to end at Rs 210.75 per share.