State-owned Hindustan Petroleum Corp Ltd (HPCL) today reported a four-fold jump in its net profit in the March quarter on back of lump sum subsidy it received from the government to cover for fuel losses in the 2011-12 fiscal.
Net profit in January-March quarter rose to Rs 4,630.99 crore from Rs 1,122.66 crore in the year ago period,the company said in a press statement here. HPCL got Rs 18,342.77 crore in cash subsidy from the government to make up for 60 per cent of the revenue it lost on selling diesel,domestic LPG and kerosene. It got another Rs 12,079.75 crore from upstream oil companies like ONGC to make up for the rest.
The company,however,posts a 40 per cent drop in its net profit in the 2011-12 fiscal to Rs 911.43 crore. This profit was on a turnover of Rs 188,131 crore. “The lower profit after tax was mainly due to increase in interest costs to Rs 2,139 crores,up from Rs 892 crores in the previous year,which was mainly due to increase in gross under-recoveries (revenue loss on fuel sales) and delay in receipt of compensation for the same,” it said. HPCL said sale of petroleum products in the domestic
market were at an all time high of 27.75 million tons during the year 2011-12,registering an increase of 7.9 per cent over the previous year,which was the highest growth in the
Its refineries at Mumbai and Visakh processed 16.19 million tons of crude during 2011-12 as compared to 14.75 million tons in the previous financial year. They earned USD 2.89 on turning every barrel of crude oil into fuel.