Hindustan Petroleum Corporation (HINDPETRO) Q4 00/01 earnings summary

Executive summary

• FY2000-01 turnover reached ₹47,179.93 crore; gross profit was a record ₹2,140.91 crore and net profit ₹1,088.01 crore, up 2.98% YoY.

• Sales volume rose to 18.39 MMT from 17.50 MMT; both refineries exceeded installed capacity utilisation of 100%.

• Performance was shaped by the shift toward deregulation, weak petroleum demand growth, excess national refining capacity, higher crude prices and investment needs for cleaner fuels.

Financial highlights

• Turnover rose 37.28% to ₹47,179.93 crore; gross profit increased 23.90% to ₹2,140.91 crore.

• Profit before tax was ₹1,320.20 crore versus ₹1,273.57 crore; profit after tax was ₹1,088.01 crore versus ₹1,057.41 crore.

• Internal resources generated were ₹1,147.45 crore versus ₹1,036.44 crore; contribution to the exchequer totalled ₹12,599.02 crore versus ₹8,732.24 crore.

• Proposed dividend was 100% versus 110% for FY1999-00; dividend plus distribution tax absorbed ₹373.94 crore.

Outlook and guidance

• Complete petroleum-sector deregulation was expected from April 1, 2002; strategy focused on customer service, quality, operational efficiency, diversification and market initiatives.

• Anticipated IX Plan investment was ₹6,900 crore for refinery modernisation and expansion, product quality, pipelines, marketing infrastructure and JVs.

• Punjab’s proposed 9 MMTPA grassroots refinery was estimated at ₹9,806 crore at June 1998 prices; land and statutory approvals were secured, with project development underway.

• Visakh-Vijayawada pipeline expansion and extension to Secunderabad was estimated at ₹377.55 crore, with scheduled completion in May 2002.