Hindustan Petroleum Corporation (HINDPETRO) Q2 24/25 earnings summary

Executive summary

• Standalone revenue from operations for the quarter was INR 1,08,216 crore, up from INR 1,02,618 crore year-over-year, with 8.2% physical growth over the previous period.

• Total consolidated income for Q2 FY25 was ₹1,08,773.93 crore, up 6% year-over-year, but down sequentially from Q1 FY25.

• Standalone profit after tax (PAT) for the quarter was INR 631 crore, impacted by suppressed marketing margins, reduced refining margins, and inventory losses.

• Net profit for Q2 FY25 stood at ₹285.81 crore, a sharp decline from ₹7,443 crore in Q2 FY24, reflecting margin compression and lower refining spreads.

• Core profitability for the first half reached INR 5,500 crore, with normalized profit (excluding one-offs) estimated at INR 3,500 crore for the quarter.

Financial highlights

• Gross refining margin (GRM) for the quarter was $3.12/bbl, down from $13.33/bbl year-over-year; Singapore benchmark GRM dropped from $10 to $4/bbl.

• GRM for April–September 2024 was $4.03/bbl, down from $10.49/bbl in the prior year period.

• Standalone net profit for H1 FY25 was ₹4,459.30 crore, down from ₹14,693.83 crore in H1 FY24.

• Marketing segment underrecovery on LPG was INR 2,057 crore for the quarter, included in reported numbers.

• Inventory loss of INR 1,400 crore split as INR 750 crore in marketing and INR 650 crore in refining.

Outlook and guidance

• CapEx for FY24 is projected at INR 12,000–13,000 crore, with INR 6,588 crore spent in H1.

• Rajasthan Refinery commissioning expected in Q4 FY24, with petchem unit six months later.

• Residue Upgradation Facility at Visakh Refinery to be commissioned in Q4 FY24, expected to add $2–$3/bbl to GRM from FY26.

• Chhara LNG terminal to be commissioned by end of FY24, with initial in-house demand of 1.5–1.7 MMT and plans to scale up.

• Management highlighted ongoing margin pressures due to lower GRMs and high input costs.