HPCL Q1 PAT tanks 94% YoY to Rs 356 cr

Hindustan Petroleum Corporation (HPCL) reported standalone net profit of Rs 355.80 crore in Q1 FY25, registering a de-growth 94.26% as against with Rs 6,203.90 crore posted in Q1 FY24.

Revenue from operations (excluding excise duty) rose 1.56% to Rs 1,13,303.57 crore in the quarter ended June 2024 as against with Rs 1,11,567.43 crore posted in the corresponding quarter previous year.

The primary reasons for lower PAT are suppressed marketing margins on select petroleum products and reduced refining margins.

Profit before tax (PBT) tumbled 94.34% to Rs 471.18 crore in Q1 FY25 as against with Rs 8,330.64 crore posted in Q1 FY24.

 

Average GRMs (Gross of export duty) for Q1 FY25 were US$ 5.03 per barrel (US$ 7.44 per barrel during the corresponding period of previous year), the reduction in GRMs is primarily due to lower cracks in line with the trend of international product cracks.

The companys refineries processed Refineries recorded crude thruput of 5.76 MMT during Q1 FY25 registering an increase of 6.7% over the thruput of 5.40 MMT during Q1 FY24 despite planned shutdown in Refineries. Widening the companys crude basket, HPCL Refineries processed imported crude Khafji and varandey, and indigenous crude KGDWN for the first time.

On the marketing front, the company recorded quarterly sales volume of 12.63 MMT (including exports) during the quarter registering a growth of 6.6% as against 11.85 MMT posted in Q1 FY24. The company also achieved market share gain of 0.25% amongst PSU oil marketing companies during the period.

During the quarter, sale of Motor fuels was 8.02 MMT (growth of 2.7% over 1QFY24) and in case of LPG, the company achieved a sales volume of 2.07 MMT (growth of 8.7% over Q1 FY24).

The Aviation business of the company recorded a robust growth of 31.3% YoY with sales volume of 261 TMT during Q1 FY25. During the quarter, new aviation refuelling facility at Kanpur was commissioned taking the total count to 55.

As on 30 June 2024, the company recorded petrochemical sales of 30.3 TMT and introduced new grade HDPE Raffia in the polymer segment. Also recorded pipeline thruput of 6.83 MMT during Q1 FY25 (growth of 5.2% over Q1 FY24).

Further, the company invested Rs 2,017 crore during the quarter to further strengthen its refining and marketing infrastructure, including its equity investment in joint venture and subsidiary companies.

The construction of all process units of the ongoing 9 MMTPA integrated grassroot Refinery-cum-Petrochemical project at Barmer, Rajasthan (HRRL) is progressing in full swing. As on 30 June, 2024, the total commitments on the project is Rs 69,845 crore and capital expenditure is Rs 48,001 crore.

The 3.55 MMTPA capacities Residue Upgradation Facility at Visakh Refinery is in advanced stage of completion. The facility is expected to be mechanically completed in Q2 FY25, and commissioning is expected in Q3 FY25. The project is one of the largest and most energy efficient residue hydrocracker units in the world.

During 1QFY25, the company commissioned 126 retail outlets across the country taking the total number of outlets to 22,148. The company also commissioned 9 new LPG distributorships during the period taking the total count of LPG distributorships to 6,358.

HPCL is engaged in the business of refining of crude oil and marketing of petroleum products. It operates through two segments: downstream, and exploration and production of hydrocarbons.

Shares of Hindustan Petroleum Corporation (HPCL) added 2.58% to Rs 391.05 on the BSE. The scrip hit an all-time high of Rs 399 in todays intraday session.

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