Robust Performance

Rank 18- Hindustan Petroleum Corporation 

M.K. Surana, CMD

Sector: Oil & Gas

Overall Avg. Score: 2.68

Revenue: Rs 273,222 crore

Navigating through a challenging environment, Hindustan Petroleum Corporation (HPCL), the second largest LPG marketer in India, delivered its highest ever profit after tax of Rs 10,664 crore during FY21. 

The significant improvement in the profitability – it crossing Rs 10,000 crore for the first time -- in spite of the challenges due to the Covid-19 pandemic was a result of efficient planning, robust operational performance and effective supply chain management, said Mukesh Kumar Surana, Chairman and Managing Director, HPCL. 

Thanks to these efforts, HPCL held on to its fifth rank on the list of BW ‘Real’ 500 Companies. It, however, slipped one place from the previous list to be ranked 18th in the BW Businessworld Most Respected Companies list this year. 

Speaking about the fantastic financial performance of HPCL, Surana explained: “It was further helped by favourable exchange rate variations and inventory gains. HPCL achieved gross sales of Rs 269,243 crore during the year.” 

Sharing The Spoils

The Board of Directors of HPCL proposed payment of a final dividend of Rs 22.75 per share for financial year 2020-21. To create value for the stakeholders, HPCL initiated its share buyback programme in November 2020 through market transactions for a maximum value of Rs 2,500 crore at a maximum rate of Rs 250 per share. As of 31st March 2021, HPCL bought 7.18 crore shares at a total value of Rs 1,986 crore. The buyback programme was successfully completed on its expiry date of 14 May 2021. Overall, HPCL bought back 10.53 crore equity shares utilising a total amount of Rs 2,954 crore which included all transaction costs and taxes.

Also, in FY21, HPCL acquired the balance 50 per cent of the equity in its JV, HPCL Shapoorji Energy (HSEPL) making it a wholly-owned subsidiary of HPCL. This was done considering the importance of natural gas in the future energy mix of the country. 

HSEPL is setting up five MMTPA capacity LNG regasification terminal at Chhara in Gujarat for which construction is already underway, the company said. During 2020-21, both HPCL refineries at Mumbai and Visakh maintained sound physical performance with a combined capacity utilisation of 104 per cent and throughput of 16.42 MMT despite the demand contraction and constraints due to the Covid-19 pandemic.