New Delhi: Hindustan Petroleum Corp Ltd Friday reported net profit of Rs 2,327 crore for the quarter ended September 30, after the government released part of the fuel subsidy.
HPCL had posted a net loss of Rs 9,249 crore in the year-ago period.
"The profit was a result of cash compensation (for selling fuel below cost) for two quarters coming together in this quarter," HPCL Director (Finance) B Mukherjee told reporters here.
The company during April-September lost Rs 19,019 crore in revenue on selling diesel and cooking fuel below cost. Of this, it got Rs 6,704 crore from upstream companies and another Rs 6,667 crore came by way of cash subsidy from the government yesterday.
"We still have a net under-recovery (revenue loss) of Rs 5,648 crore which is reflected in the Rs 6,921,71 crore net loss poste din April-September period," he said.
HPCL had in Q1 (April-June) FY2012-13 reported highest every quarterly net loss of Rs 9,248.89 crore.
The government subsidy helped it post profit in Q2.
HPCL and other state-owned fuel retailers Indian Oil and Bharat Petroleum Corp Ltd (BPCL) sell diesel, domestic LPG and kerosene at government controlled rates which are way lower than cost. The losses they incur are met through a combination of cash subsidy from the government and assistance from upstream firms like ONGC.
Sales rose to Rs 48,463.94 crore in the July-September quarter from Rs 37,030.23 crore in the same period last fiscal.
Mukherjee said the company earned USD 4.30 on turning every barrel of crude oil into petroleum products in Q2 as against a gross refining margin of USD 1.92 per barrel in the corresponding period last fiscal.
At current rate, the company estimates it will end the fiscal with a revenue loss of Rs 35,000 crore on sale of diesel, domestic LPG and kerosene.