HPCL sinks into red
HPCL has posted back-to-back losses; in Q1FY23, the PSU had posted record consolidated net loss of Rs 10,197 crore and then in Q2FY23 its net loss was at Rs.2172 crore. This was despite a 30% jump in revenue from operations at Rs.1.13 lakh crore.
This loss was despite the one-time grant of Rs.5617 crore it received from the Govt to make up for most of the losses that the oil PSUs had incurred on selling cooking gas LPG below cost in the last two years.
The company, along with IOC and BPCL are supposed to revise petrol and diesel prices daily in line with cost but these have not changed for over six-and-half-months now. This is the longest duration with no rate change since fuel pricing was deregulated.
It also booked a Rs 1,548.51 crore forex loss in the period.
Average gross refining margin (GRM) for Q2FY23 was $12.62 per bb v/s $2.87/bbl (YoY). This is before factoring the impact of Special Additional Excise Duty.
HPCL said, ''With the changed input cost dynamics during Q2 FY22-23, the company was able to negotiate better prices and partially mitigate the effect of high costs. Nonetheless, high input costs and consequent depressed marketing margins continued to impact the profitability''.
The stock price has understandably sunk down into the red today; it fell 5% to hit an intraday low at Rs.201.05, just a tad away from its 52-week low of Rs.200.