Hindustan Petroleum Corporation Ltd.’s profit fell in the quarter ended March due to lower inventory gains, but matched analyst estimates.
Net profit of the state-owned oil and gas company fell 10.4 percent quarter-on-quarter to Rs 1,747.9 crore from the previous quarter, said the company in an exchange filing today. That’s in line with the Bloomberg consensus estimate of Rs 1,757 crore. The profit decline was due to lower inventory gains, MK Surana, managing director of HPCL told BloombergQuint in an interview. HPCL recorded inventory gains of Rs 157 crore as compared with Rs 1,477 crore during the previous quarter.
Revenue rose 5.8 percent to Rs 60,810 crore as compared to the same period last year.
Earnings from interest, tax, depreciation and amortisation rose 8.2 percent quarter-on-quarter to Rs 2922.6 crore. The operating margin contracted 70 basis points to 4.8 percent.
HPCL earned $6.6 for every barrel of crude processed into fuel as compared with $9.04 per barrel in the previous quarter. The Singapore gross refining margin – the Asian benchmark – averaged around $7 per barrel.
The stock fell 0.3 percent to Rs 311.8 apiece ahead of the earnings announcement.
Watch the full interview with MK Surana here.