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, holding Maharatna status and operating the largest lube refinery.

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

• Major projects, including Visakhapatnam Refinery expansion, Chhara LNG terminal, LPG cavern at Mangalore, and 2G ethanol plant at Bathinda, are on track for completion by year-end.

• Focus on digital transformation, talent management, and robust CSR initiatives.

Financial highlights

• Q1 FY25 net profit was ₹633.94 crore, a sharp decline from previous quarters, with reported profit for the quarter close to INR 3,000 crore in earlier reports.

• 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.

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

• Lubricant business sold over 150 TMT in the quarter, targeting 700-750 TMT for the year, with annual EBITDA around INR 1,000 crore.

Outlook and guidance

• EBITDA target of INR 40,000 crore (~$5 billion) by FY 2028, supported by new project commissioning and operational enhancements.

• 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.

• GRMs expected to be in the $5-$8 per barrel range in the coming quarters, with further upside from new units.

• CapEx planned at INR 14,000-15,000 crore annually for the next 3-4 years, with most investments funded through internal accruals.