Stater-run refiner Hindustan Petroleum Corporation (HPCL) reported strong earnings performance during the fiscal first quarter. The novel Coronavirus or Covid-19 pandemic induced lockdown proved boon for the refiner.
The standalone profit at Rs 2,813.8 crore for the quarter ended June 2020, was sharply higher from Rs 26.8 crore in March quarter and Rs 811 crore in June quarter 2019.
Revenue from operations for the quarter at Rs 37,721 crore fell sharply by 43% compared to Rs 66,154.9 crore in March quarter. The year-on-year decline was 46.9%.
On the capex front, the company expects to go ahead with its committed projects given the availability of adequate fund based limits with consortium as well as non-consortium banks apart from an option to tap other resources for meeting its fund requirements, as such there are no liquidity concerns.
The earnings before interest, tax, depreciation and amortisation (EBITDA) stood at Rs 4,353.6 crore for the June quarter against EBITDA loss of Rs 706.8 crore in March quarter.
There was a significant fall in demand for petroleum products in the month of April 2020 due to lockdowns and sales were down by over 48% as compared to April 2019. Subsequently demand gradually improved with relaxations in the movement of people, goods and services.
Sales of petroleum products in May 2020 was 77% of 2019 level and rose to 91% of the year-ago volumes in June 2020.
However, with some states re-imposing lockdowns, the demand for all petroleum products has fallen to 84% in July.
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