The board of directors of Hindustan Petroleum Corp Ltd (HPCL) approved the share buyback value on Wednesday ₹2500 crore.
The board approved the share buyback proposal of Rs 10 crore, representing 6.56% of the shares ₹250 per share.
The repurchase price has a 34% premium over HPCL’s closing price on November 4.
On Wednesday, HPCL’s NSE scrip closed 0.83% higher at ₹187.20.
HPCL’s stand-alone net income more than doubled during the September quarter in ₹2,477 crore vs ₹1,052 crore a year ago.
However, total income decreased to ₹62,419 crore compared to ₹66,854 crore in September 2019.
“The significant improvement in profitability despite the challenges, including the lockdown due to the COVID-19 pandemic, was the result of strategic planning in refinery and marketing operations, which contained the decrease unless the industry, efficient inventory management and effective production placement, “HPCL president and managing director Mukesh Kumar Surana told reporters in a call, PTI reported.
The company earned $ 5.11 for converting each barrel of crude oil into fuel in the second quarter of fiscal 2020-21, compared to a gross refining margin of $ 2.83 a barrel.
This included an inventory gain of USD 2.33 per barrel from buying cheaper crude earlier and processing it in the second quarter. This resulted in ₹Rs 1,780 crore profit. In addition, the company also made a foreign exchange gain of ₹524 crore, he said.
Surana said that the national lockdown imposed to contain the spread of the pandemic in India caused a significant contraction in demand for petroleum products in April 2020 and sales were down by more than 48.5 percent compared to the year. previous.
“However, with the subsequent relaxations announced by the central and state governments and the gradual opening of the economy, the demand for petroleum products rebounded dramatically. The total sale of petroleum products reached the level of 98% in September 2020 compared to the sales in September 2019, “said HPCL CMD.
Domestic sales volume during July-September was 8.10 million tonnes compared to 8.95 million tonnes last year, which was 90.5 percent of last year’s volume during the same period.
During the quarter, 303 new outlets were ordered, bringing the total network of retail outlets to 17,171 in September 2020. HPCL also ordered 37 new LPG distributions during the quarter, bringing the total to LPG distributions to 6,153 in September 2020.
“To ensure availability of alternative fuels and offer more choice to customers, CNG dispensing facilities were commissioned in 103 retail outlets during April to September 2020, bringing the total number of retail outlets with CNG facilities to 574.” , said. “With the commissioning of 42 mobile dispensing equipment during the period for the door-to-door delivery of diesel, the total number of mobile dispensing equipment increased to 60.”
With PTI inputs
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