The Asset · Fuel Retail
Financial Review
HP Retail Outlet · Campierganj, Gorakhpur
A fuel-retail business is won on litres and lost on leakage. This is the full financial picture — what the year earned, where it went, and the three levers that move the result.
The business turned ₹39.09 crore of fuel into ₹47.08 lakh of net profit — a 1.20% margin, yet a healthy 29.5% return on the owners' capital. After adding back ₹17.15 lakh of non-cash depreciation, it generated ₹64.23 lakh of cash. The whole story sits on three levers.
At 1.20% net, profit is won by cost discipline, never markup. Sales could double and the bottom line would barely move. → See the P&L flow.
Salary, depreciation and commission are 71% of all overhead. Two are controllable; one is non-cash. → See the cost anatomy.
More than a full year's profit sits in receivables. Collecting it is the fastest cash win available. → See the balance sheet.
Fuel costs absorb 97.5% of every rupee, leaving ₹95.70 lakh gross. The bunk incentive adds to it; salary, depreciation, commission and other heads take from it. Hover any step to read it.
Sales climbed from ₹1.69 Cr to a ₹3.51 Cr peak in November, dipping through August–September. Operating profit moved within a far narrower band — proof that growth here comes from litres, not price.
| Product | Volume (L) | Sales | Avg ₹/L | Share |
|---|
Salary (28%), depreciation (24%) and the APF commission (19%) dominate. The rest is a long tail of small heads. Switch views to see the annual ranking, the monthly shape, or the commission detail.
| Month | Salary | Commission | Welfare | Maintenance | Donation | Other | Total |
|---|
| Product | ₹/L | Volume | Commission |
|---|
The balance sheet is healthy and owner-funded — ₹1.60 Cr of capital, ₹35 L of loans. The concern is concentration: more than half of all assets are receivables, against just ₹24.6 L of cash.
Not theory — concrete rupee gains that follow directly from the numbers in this review. Two free up cash; one lifts profit.
Collect half of the ₹1.35 Cr owed to you and cash in the bank jumps from ₹24.6 L to ₹92 L. Collect it all → ₹1.59 Cr. This is cash, not profit — your own money coming back.
Cut just 10% of the ₹40.7 L controllable cash overhead and it flows straight to the bottom line — net profit rises from ₹47.08 L to ₹51.2 L, margin 1.20% → 1.31%.
₹17.15 L of reported "cost" is depreciation — non-cash, no money leaves. So the business actually generated ₹64.2 L of cash, well above the ₹47.08 L net profit.
Five actions, each tied to a number already shown. Open any one for the implementation detail.
This table is the month-by-month operating view (the management cut). It does not include the year-end depreciation charge or the commission, so its total — ₹68.19 L — is higher than the statutory net profit. The reconciliation below shows how the two connect.
| Month | Sales | Gross Profit | Ind. Exp | Op. Profit | Op. % |
|---|
| Operating profit (sum of months above) | ₹68,18,806 |
| Less: Depreciation (non-cash, charged year-end) | − ₹17,15,255 |
| Less: APF commission (booked in final accounts) | − ₹13,47,425 |
| Add: Gross profit & income restatement (closing stock / lube) | + ₹9,51,396 |
| Statutory Net Profit (official P&L) | ₹47,07,522 |