Results     24-Jan-25
Analysis
Hindustan Petroleum Corporation
Robust physical performance
Net sales (including other operating income) of Hindustan Petroleum Corporation has declined 0.66% to Rs 110607.97 crore.  Sales of Downstream Petroleum segment has gone up 0.46% to Rs 118,956.19 crore (accounting for 99.93% of total sales).  Sales of Others segment fell 14.72% to Rs 89.14 crore (accounting for 0.07% of total sales).  Inter-segment sales came down from Rs 26.61 crore to Rs 6.58 crore.

Profit before interest, tax and other unallocable items (PBIT) has jumped 355.21% to Rs 4,536.17 crore.  PBIT of Downstream Petroleum segment rose 365.44% to Rs 4,566.07 crore (accounting for 100.66% of total PBIT).  PBIT of Others reported loss of Rs 29.90 crore compared to profit of Rs 15.47 crore. 

PBIT margin of Downstream Petroleum segment rose from 0.83% to 3.84%.  PBIT margin of Others segment fell from 14.80% to 33.54%.  Overall PBIT margin rose from 0.84% to 3.81%. 

Operating profit margin has jumped from 1.94% to 5.39%, leading to 175.84% rise in operating profit to Rs 5,959.24 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 29.54% to 33.36%.   Purchase of finished goods cost fell from 63.50% to 55.18%.   Employee cost increased from 0.78% to 0.91%.   Other expenses rose from 4.21% to 4.94%.  

Other income fell 12.61% to Rs 462.34 crore.  PBIDT rose 138.77% to Rs 6421.58 crore.  Provision for interest rose 50.23% to Rs 930.7 crore. 

PBDT rose 165.27% to Rs 5490.88 crore.  Provision for depreciation rose 12.80% to Rs 1517.72 crore. 

Profit before tax grew 448.40% to Rs 3,973.16 crore.  Provision for tax was expense of Rs 965.01 crore, compared to Rs 273.6 crore.  Effective tax rate was 27.50% compared to 27.74%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 256.83% to Rs 2,543.65 crore led by robust physical performance and operational efficiencies in both refining and marketing divisions, coupled with improved margins. 

Promoters’ stake was 54.90% as of 31 December 2024 ,compared to 54.90% as of 31 December 2023.

Physical Performance

During the period Apr-Dec 2024, HPCL refineries recorded highest ever crude thruput of 18.53 MMT (operating at 106% of the installed capacity) registering an increase of 12.4% over the thruput of 16.49 MMT during Apr-Dec 2023. During 3QFY25, the refineries recorded crude thruput of 6.47 MMT (operating at 111% of the installed capacity) registering an increase of 21.2% over the thruput of 5.34 MMT during 3QFY24. During the quarter, Visakh Refinery added a new product ‘Solvent 3275’ to its basket of products. 

During the period Apr-Dec 2024, HPCL recorded highest ever sales volume of 37.12 MMT (including exports) registering a growth of 7.6% as against 34.49 MMT during Apr-Dec 2023. The company also recorded highest ever quarterly sales volume of 12.87 MMT (including exports) during 3QFY25 registering a growth of 8.2% as against 11.90 MMT during 3QFY24. On the domestic front, HPCL achieved sales volume growth of 8.2% during the quarter, as against Industry growth of 6.3% (6.5% during Apr-Dec’24, as against Industry growth of 4.8%). Despite rigorous competition by other OMCs and private players, HPCL recorded market share gain of 0.36% during 3QFY24 (0.32% during AprDec’24).

During 3QFY25, sale of Motor Fuels was 7.85 MMT (growth of 6.3% over 3QFY24) and in case of LPG, the company achieved a sales volume of 2.31 MMT (growth of 4.9% over 3QFY24). The Industrial Products business of the company recorded a sales volume of 1.25 MMT during the quarter (growth of 25.5% over 3QFY24).

The Aviation business of the company recorded a growth of 26.0% over 3QFY24 with sales volume of 285 TMT during the quarter. HPCL’s Lubricants segment’s sales volume was 178 TMT during the quarter (growth of 11.5% over 3QFY24).

During 3QFY25, HPCL recorded highest ever pipeline thruput of 6.93 MMT (growth of 3.3% over 3QFY24).

Update on ongoing Projects

HPCL invested Rs. 2,892 crore during 3QFY25 to further strengthen its refining and marketing infrastructure, including investment in joint venture and subsidiary companies. This takes the total investment during Apr-Dec 2024 to Rs. 9,481 crore.

HPCL LNG Ltd. (a wholly owned subsidiary of HPCL) successfully completed discharge of the LNG commissioning cargo into the onshore tanks of its 5 MMTPA regassification terminal at Chhara, Gujarat on 12th January 2025. The commercial operations of the Terminal are expected to be commenced shortly.

During 3QFY25, HPCL commenced work on the ‘Lube Modernization and Bottoms Upgradation Project’ at Mumbai Refinery. The estimated cost of the project is Rs. 4,679 Crore, and the project is scheduled to be completed by March 2028. The project shall enhance the Lube Oil Base Stocks (LOBS) production of the refinery from current 475 KTPA to 764 KTPA, with production of superior grade Group II+ and Group III LOBS.

Production of Bitumen will also increase by approx. 487 KTPA with upgradation of Fuel Oil to Bitumen. Additionally, this project will also result in distillate yield improvement of the Refinery by around 4%.

During 3QFY25, Mumbai Refinery commissioned VGO hydrotreating in DHT Unit, thus, becoming the only unit in India processing VGO and Diesel in parallel reactors in a single unit. This shall result in improved Motor Spirit (MS) yields of the Refinery by approx. 100 TMTPA.

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 of 31st December 2024, the total commitments on the project are Rs 71,814 crore and capital expenditure is Rs 52,869 crore. The Refinery and Petrochemical complex is expected to be progressively commissioned during the current calendar year. The 3.55 MMTPA capacity Residue Upgradation Facility (RUF) at Visakh Refinery is mechanically complete, and pre-commissioning activities are underway. The Unit is expected to take in hydrocarbon in 4QFY25, post completion of statutory approvals from OISD and PESO. The unit is one of the largest and most energy efficient residue hydrocracker units in the world. This will be the first unit in the world using LC-MAX technology which enables highest conversion of bottoms, thereby improving GRM for the refinery on full capacity.

During 3QFY25, HPCL commissioned 452 retail outlets across the country taking the total number of outlets to 22,953. The company also commissioned 6 new LPG distributorships during the period taking the total count of LPG distributorships to 6,370.

During 3QFY25, HPCL commenced CNG sales in Darjeeling, Jalpaiguri and Uttar Dinajpur Geographical Areas (GAs), and commercial PNG sales in Shahjahanpur Badaun GA, thus strengthening its presence in the eastern part of the country.

For year-to-date (YTD) results analysis

Net sales (including other operating income) of Hindustan Petroleum Corporation has increased 1.66% to Rs 324473.37 crore.  Sales of Downstream Petroleum segment has gone up 2.34% to Rs 348,007.22 crore (accounting for 99.91% of total sales).  Sales of Others segment fell 16.91% to Rs 297.82 crore (accounting for 0.09% of total sales).  Inter-segment sales came down from Rs 77.00 crore to Rs 55.40 crore. 

Profit before interest, tax and other unallocable items (PBIT) has slumped 59.85% to Rs 6,662.21 crore.  PBIT of Downstream Petroleum segment fell 59.26% to Rs 6,759.89 crore (accounting for 101.47% of total PBIT).  PBIT of Others reported loss of Rs 97.68 crore compared to profit of Rs 2.28 crore. 

PBIT margin of Downstream Petroleum segment fell from 4.88% to 1.94%.  PBIT margin of Others segment fell from 0.64% to 32.80%.  Overall PBIT margin fell from 4.88% to 1.91%. 

Operating profit margin has declined from 6.28% to 3.31%, leading to 46.34% decline in operating profit to Rs 10,755.88 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 29.23% to 33.39%.   Purchase of finished goods cost fell from 59.63% to 58.03%.   Employee cost decreased from 0.80% to 0.78%.   Other expenses rose from 4.09% to 4.46%.  

Other income rose 3% to Rs 1513.94 crore.  PBIDT fell 42.97% to Rs 12269.82 crore.  Provision for interest rose 42.05% to Rs 2608.6 crore. 

PBDT fell 50.91% to Rs 9661.22 crore.  Provision for depreciation rose 14.29% to Rs 4530.86 crore. 

Profit before tax down 67.35% to Rs 5,130.36 crore.  Provision for tax was expense of Rs 1341.66 crore, compared to Rs 4070.69 crore.  Effective tax rate was 28.78% compared to 23.43%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company decreased 75.05% to Rs 3,320.26 crore. 

Promoters’ stake was 54.90% as of 31 December 2024 ,compared to 54.90% as of 31 December 2023. 

New Businesses/Initiatives

During the quarter, HP Green R&D Centre (HPGRDC) entered into Memorandum of Agreement with M/s Engineers India Limited as an exclusive ‘Technology & Engineering Partner’ for engineering, marketing, and commercialization of the HP-PSA (Hydrogen Pressure Swing Adsorption) technology developed by HPGRDC, across India.

During 3QFY25, HPGRDC filed 14 patents, taking the total number of patents filed to 620, out of which 236 patents have been granted till 31 st December 2024.

As part of value unlocking initiatives being undertaken for the Lubricants business, benefits from the roll-out of supply chain, cost optimisation, product-mix spread and customer engagement initiatives, have started accruing. Simultaneously, approvals for carve-out of the business continues to be actively pursued with the Appropriate Authority.

As part of initiatives to increase Non-Fuel business of the company and providing valueadded services to its customers, 3 new HaPpy Shops were added during 3QFY25, taking the total count of HaPpy Shops operating nationwide to 482.

The scrip is currently trading at Rs 366

  

Hindustan Petroleum Corporation : Consolidated Results

Particulars

2412 (03)

2312 (03)

Var.(%)

2412 (09)

2312 (09)

Var.(%)

2403 (12)

2303 (12)

Var.(%)

Net Sales

1,10,607.97

1,11,347.75

-1

3,24,473.37

3,19,178.88

2

4,33,856.51

4,40,709.25

-2

OPM (%)

5.4

1.9

 

3.3

6.3

 

5.8

-1.6

 

OP

5,959.24

2,160.41

176

10,755.88

20,046.04

-46

24,927.78

-7,207.08

LP

Other Inc.

462.34

529.03

-13

1,513.94

1,469.91

3

1,916.94

1,465.91

31

PBIDT

6,421.58

2,689.44

139

12,269.82

21,515.95

-43

26,844.72

-5,741.17

LP

Interest

930.7

619.5

50

2,608.60

1,836.37

42

2,556.00

2,174.11

18

PBDT

5,490.88

2,069.94

165

9,661.22

19,679.58

-51

24,288.72

-7,915.28

LP

Depreciation

1517.72

1345.44

13

4530.86

3964.2

14

5596.43

4560.15

23

PBT

3,973.16

724.5

448

5130.36

15715.38

-67

18692.29

-12475.43

LP

Share of Profit/(Loss) from Associates

-464.5

261.94

PL

-468.44

1660.61

PL

1807.98

2491.51

-27

PBT before EO

3508.66

986.44

256

4661.92

17375.99

-73

20500.27

-9983.92

LP

EO Income

0

0

-

0

0

-

0

0

-

PBT after EO

3508.66

986.44

256

4661.92

17375.99

-73

20500.27

-9983.92

LP

Taxation

965.01

273.6

253

1341.66

4070.69

-67

4485.66

-3003.69

PL

PAT

2543.65

712.84

257

3320.26

13305.3

-75

16014.61

-6980.23

LP

Minority Interest (MI)

0

0

-

0

0

-

0

0

-

Net profit

2543.65

712.84

257

3320.26

13305.3

-75

16014.61

-6980.23

LP

EPS (Rs)*

11.95

3.35

 

15.6

62.53

 

75.26

-32.8

 

Notes

* EPS is on current equity of Rs 2,127.82 crore, Face value of Rs 10, Excluding extraordinary items.

# EPS is not annualised

bps : Basis points

EO : Extraordinary items

Figures in Rs crore

Source: Capitaline Corporate Database

 

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