HPCL reports standalone net profit of `631 crore in Q2 FY25

Mumbai: In the backdrop of good physical performance in both Refineries and Marketing, Hindustan Petroleum Corporation Limited (HPCL) has reported Standalone Revenue from Operations of Rs 1,08,216 crore during Q2 FY25 (Rs 1,02,618 crore during Q2 FY24).

The Company’s Standalone Profit after Tax (PAT) during Q2 FY25 is Rs 631 crore (Rs 5,118 crore during Q2 FY24). The Consolidated PAT during this quarter is Rs 143 crore (Rs 5,827 crore during Q2 FY24).

The primary reasons for lower PAT are suppressed marketing margins on select petroleum products, reduced refining margins due to lower cracks and falling International crude & Product prices.

Average GRMs for Q2 FY25 were $3.12 per barrel ($13.33 per barrel during Q2 FY24). The reduction in GRMs is in line with the trend of international benchmark product cracks.

During the period April-September 2024, HPCL Refineries recorded highest ever crude thruput of 12.06 MMT (operating at 103.7 per cent of the installed capacity) registering an increase of 8.2 per cent over the thruput of 11.15 MMT during April-September 2023.

During Q2 FY25, the refineries recorded crude thruput of 6.30 MMT (operating close to 107.7 per cent of the installed capacity) registering an increase of 9.6 per cent over the thruput of 5.75 MMT during Q2 FY24.

Widening the company’s crude basket, HPCL procured two new grades of crude (Jubilee and Pazflor) for the first time.

During the period April-September 2024, HPCL recorded sales volume of 24.25 MMT (including exports) registering a growth of 7.3 per cent as against 22.59 MMT during April-September 2023.

The company recorded sales volume of 11.62 MMT (including exports) during Q2 FY25 registering a growth of 8.2 per cent as against 10.74 MMT during Q2 FY24.

On the domestic front, HPCL achieved sales volume growth of 5.6 per cent during the quarter as against PSU Industry growth of 1.8 per cent.

HPCL also recorded market share gain of 0.78 per cent amongst PSU oil companies during the quarter.

During Q2 FY25, sale of Motor fuels was 6.8 MMT (growth of 4.5 per cent over Q2 FY24) and in case of LPG, the company achieved a sales volume of 2.25 MMT (growth of 5.9 per cent over Q2 FY24).

The Aviation business of the company recorded a growth of 19.6 per cent over Q2 FY24 with sales volume of 250 TMT during Q2 FY25.

HPCL’s Lubricants segment sales volume was 168 TMT during the quarter, (growth of 5.0 per cent over Q2 FY24). During Q2 FY25, the company recorded its highest-ever petrochemical sales of 30.4 TMT.

HPCL also recorded pipeline thruput of 6.53 MMT during Q2 FY25 (growth of 6.5 per cent over Q2 FY24).

Update on ongoing Projects

HPCL invested Rs 3,771 crore during Q2 FY25 to further strengthen its refining and marketing infrastructure, including investment in joint venture and subsidiary companies. This takes the total investment during April-September 2024 to Rs 6,588 crore.

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.

The key Process units viz. Diesel Hydrotreating (DHDT) and Hydrogen Generation Unit (HGU) are under pre-commissioning. The physical progress for the other key Process units, i.e. CDU/VDU, DCU, PFCCU & VGO-HDT is around 94 per cent, and the overall physical progress of the project has exceeded 82 per cent.

The crude oil pipelines, for both imported as well as for domestic crude oil, are also more than 94 per cent complete.

As on September 30, 2024, the total commitments on the project are Rs 70,872 crore and capital expenditure is Rs 50,570 crore.

The 3.55 MMTPA capacity Residue Upgradation Facility at Visakh Refinery is nearing mechanical completion shortly, and commissioning is expected in Q4 FY25. The project is one of the largest and most energy efficient residue hydrocracker units in the world.

During Q2 FY25, HPCL commissioned 353 Retail Outlets across the country taking the total number of Outlets to 22,501.

The company also commissioned 6 new LPG distributorships during the period taking the total count of LPG distributorships to 6,364.