PRESS TRUST OF INDIA
New Delhi, 12 November
Hindustan Petroleum Corp (HPCL) today reported an 86 per cent drop in second quarter profit after it received lower fuel subsidy and refining margins dropped.
Net profit fell to Rs 318.92 crore in July-September quarter of this fiscal from Rs 2,372.09 crore a year earlier, HPCL director (finance) K V Rao told reporters here.
State-owned HPCL lost Rs 8,234 crore on selling diesel, domestic cooking gas (LPG) and kerosene at rates set by the government in Q2. To make up for part of the shortfall, upstream oil firms such as ONGC chipped in Rs 3,909 crore and the government gave a cash subsidy of Rs 4,127 crore.
“After accounting for upstream share and government compensation, we had a net under-recovery (revenue loss) of Rs 198 crore,” he said.
Profit in the year-earlier quarter was high because the government paid fuel subsidy for two quarters (Q1 and Q2 of FY’13) in that period.
The company earned $3.81 on turning every barrel of crude oil into fuel in Q2 in the current financial year as opposed to a gross refining margin of $4.3 in the same period last year, he said. Mr Rao said the company suffered a forex loss of Rs 153 crore after volatility in the rupee-dollar exchange rate.