Hindustan Petroleum Corporation (HINDPETRO) Q1 24/25 earnings summary

Executive summary

• Revenue from operations reached INR 101,208.69 crore in Q1 FY25, with highest-ever quarterly sales and increased market share despite a planned Mumbai refinery shutdown.

• Over 100 years of operations with a strong presence in refining, marketing, and R&D in India.

• Holds Maharatna status, operates the largest lube refinery, and is the second-largest in retail and LPG marketing.

• Total consolidated income for Q1 FY25 was ₹1,21,488.56 crore, up 2.1% year-over-year.

• Net profit for Q1 FY25 stood at ₹633.94 crore, a sharp decline from previous quarters.

Financial highlights

• Q1 profit reported close to INR 3,000 crore, despite challenging GRM environment and LPG under-recoveries.

• FY 2023-24 saw record net profit of ₹14,694 Cr and revenue from operations of ₹4,61,638 Cr.

• Gross refining margin (GRM) for Q1 FY25 was $5.03/bbl, down from $7.44/bbl in Q1 FY24.

• Inventory losses: INR 245 crore in marketing and INR 113 crore in refining.

• EBITDA for 2023-24 at ₹27,221 Cr, with net worth at ₹49,753 Cr.

Outlook and guidance

• EBITDA target of INR 40,000 crore (~$5 billion) by FY28, driven by new projects and capacity expansions.

• Refining capacity to increase from 34.5 MMTPA in 2023-24 to 45.3 MMTPA by 2027-28.

• Major investments in green energy, renewables, and net zero initiatives, targeting net zero Scope 1 & 2 emissions by 2040.

• Projected doubling of EBITDA by FY28, with continued focus on digital and operational excellence.

• GRMs expected to improve to $5-$8/bbl in the coming quarters as crude prices soften and product cracks recover.