HPCL Q1 Results: OMC reports net loss of Rs 10,196 crore

NEW DELHI: HPCL on Saturday reported a huge net loss of Rs 10,196 crore loss for the June quarter compared to profits of Rs 1,900.80 crore in March and Rs 1,878.46 crore in the corresponding quarter last year.

Total income for the quarter jumped 55.8 percent year-on-year to Rs 1,21,788.50 crore compared to Rs 78,182 crore in the same quarter last year.

The heavy losses are due to the erosion of marketing margins of motor fuels and LPG company said the BSE

filing. In addition, the company incurred a foreign account loss of Rs 945.40 crore currency transactions.

Average gross refining margin for the quarter amounted to $16.69 per barrel versus $3.31 per barrel a year ago.

Operating profit margin for the quarter was minus 11.19%, compared to 0.96% in March and 2.65% in the previous quarter.

Meanwhile, the board of directors of the company has approved the proposal to seek approval from the members of the company at the next annual general meeting of the company to increase the borrowing limits from the existing Rs 30,000 crore to Rs 50,000 crore, over and above the aggregate of the paid-up share capital increase and the free reserves of the company. This would be separate from the temporary loans obtained from the company’s bankers in the ordinary course of business and to create security against the said loan.

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