Profit before tax (PBT) soared 139.7% to Rs 3,119.71 crore in Q1 June 2020 as against Rs 1,301.44 crore in Q1 June 2019. Current tax expense for the quarter jumped 148.6% at Rs 835.91 crore as against Rs 336.28 crore in Q1 June 2019. The result was declared after trading hours yesterday, 6 August 2020.
Standalone net profit soared 247% to Rs 2,813.83 crore on 47% drop in net sales to Rs 37,498.23 crore in Q1 June 2020 over Q1 June 2019. Average gross refining margin during the quarter ended 30 June 2020 was at $0.04 per bbl (barrel of oil) as against $0.75 per bbl during 30 June 2019.
The COVID-19 pandemic is globally inflicting high economic and human costs causing slowdown of economic activity. With regards to HPCL, it did have impact on the sales in April and May 2020, although substantial recovery was seen in June 2020. Being essential commodity, there have been no major disruption in refining operations including in supply chain, even during the lockdown period. The PSU OMC stated that the impact assessment of pandemic is a continuing process given the uncertainties associated with its nature and duration.
HPCL is engaged in the business of refining of crude oil and marketing of petroleum products. It operates through two segments: downstream, and exploration and production of hydrocarbons. ONGC holds 51.11% stake in HPCL as of 30 June 2020.
Shares of Hindustan Petroleum Corporation (HPCL) fell 0.95% to Rs 214.15 on BSE. The scrip hovered in the range of Rs 213.70 to Rs 224.90 so far.