Hindustan Petroleum Corporation (HINDPETRO) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 saw exceptional performance with profit after tax at INR 3,989.99 crore, up from INR 768.05 crore in Q3 FY24, driven by operational efficiencies and improved margins in both refinery and marketing divisions.

• Standalone and consolidated unaudited financial results for the quarter and nine months ended December 31, 2024, were reviewed and approved by the Board on January 23, 2025.

• Over 100 years of operations with a diversified portfolio in refining, marketing, natural gas, renewables, and R&D.

• Holds Maharatna status, operates India's largest lube refinery, and has the second-largest product pipeline and retail network.

• Strong presence in the Indian oil & gas sector with a 20.5% domestic market share in petroleum products as of Dec 2024.

Financial highlights

• Standalone net profit for Q3 FY25 was INR 3,989.99 crore, compared to INR 768.05 crore in Q3 FY24.

• Standalone revenue from operations was INR 118,936 crore, nearly flat year-over-year, while average GRM was $6.01/bbl, down from $8.49/bbl last year but above Singapore benchmarks.

• Consolidated net profit for Q3 FY25 was INR 3,341.27 crore, up from INR 936.66 crore in Q3 FY24.

• Inventory losses in Q3: INR 355 crore in refinery and INR 460 crore in marketing; cumulative April-December losses were INR 1,100 crore (refinery) and INR 1,450 crore (marketing).

• Debt declined by INR 12,000 crore sequentially, mainly due to operational performance and oil bond maturity.

Outlook and guidance

• GRMs for next year expected to be $5–$6/bbl, with Visakh Residue Upgradation Unit adding $2–$3/bbl at Visakh.

• Refining capacity to increase from 34.5 MMTPA in 2024-25 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 levels by FY28, with focus on operational excellence and digital transformation.

• CapEx guidance for FY25 and coming years is INR 13,000–15,000 crore annually.