HPCL posts Q2 profit of Rs 701 cr

State-run Hindustan Petroleum Corp Ltd (HPCL) posted a net profit in the second quarter ended September from a loss in the year-ago period on the back higher sales and lower inventory losses, on a day when oil marketers announced a cut in transport fuel prices.

HPCL earned a profit of Rs 701 crore in the quarter in question compared with a loss of Rs 317 crore in the same quarter a year ago.

“The increase in profit is due to higher domestic market sales and reduced inventory loss compared to corresponding period of last year,” the company said in a statement.

“Inventory loss came down to Rs 359 crore this quarter compared to Rs 1,406 crore during the second quarter of the previous fiscal,” said Chairman M.K. Surana.

The numbers also included budgetary support from the government amounting to Rs 691.86 crore towards under-recovery on sale of kerosene, the company said.

Sales during the quarter in consideration increased 3 per cent to Rs 47,822.49 crore, from Rs 46,368.15 crore in the corresponding quarter of 2015.

“Domestic sales of petroleum products increased to 8.02 million tonnes from 7.78 million tonnes, registering a growth of 3.1 per cent over the corresponding quarter of the previous year,” HPCL said in the statement.

Combined gross refining margin during the quarter, or earning from conversion of every barrel of crude oil into fuel, Acame in at $3.23 per barrel, against $2.74 per barrel a year ago.

Results came in after market hours, while the HPCL stock closed on Tuesday at Rs 441.25 a share, down 7.25 points, or 1.62 per cent, on its previous close on the BSE