HPCL Q4 Results: Cons Net Profit Decline By 25%To Rs 2,709 Cr; Average GRM Drops At $9.08 Per Barrel

Hindustan Petroleum Corporation Limited (HPCL) on Thursday announced financial results for the fiscal year 2023-24, showcasing a turnaround. The company reported a consolidated profit after tax (PAT) of Rs 16,015 crore, a significant leap from the consolidated net loss of Rs 6,980 crore in the previous financial year.

Similarly, the standalone PAT for FY 2023-24 reached an all-time high of Rs 14,694 crore, compared to a standalone net loss of Rs 8,974 crore in the previous fiscal year.

In the Jan-Mar 2024 quarter, HPCL recorded a standalone PAT of Rs 2,843 crore, marking a remarkable 437% increase from the PAT of Rs 529 crore reported in the previous quarter (Oct-Dec 2023).

Despite this, the company witnessed a slight decrease in revenue from operations, which stood at Rs 1,21,532 crore for the quarter, a 6.2% increase from the corresponding period of the previous year.

However, on a consolidated basis, HPCL posted net profit of Rs 2,709.31 crore, declining by 25% from its profit of Rs 3,608.32 crore earned in the same quarter a year ago. Meanwhile, consolidated total income stood at Rs 1.22 lakh crore during the quarter under review, dropping by 6%, as against Rs 1.15 lakh crore in the corresponding period of the previous. .

Profitability of the company took a hit on the backdrop of weak refining margins.

"The company's average gross refining margin (GRM), a key performance indicator for the refining sector, witnessed a decline. For FY 2023-24, the average GRM stood at US$ 9.08 per barrel, compared to US$ 12.09 per barrel in the previous fiscal year. Similarly, the GRMs for the January-March 2024 period were US$ 6.95 per barrel, reflecting the prevailing trend of international product cracks," HPCL said in the filling.

HPCL's Board of Directors has recommended the issuance of bonus shares in the ratio of 1:2, subject to approval by the company's members.

Additionally, a final dividend of Rs 16.50 per equity share has been proposed for FY 2023-24, subject to approval in the Annual General Meeting. This final dividend, in addition to the interim dividend paid earlier, underscores the company's commitment to delivering value to its shareholders.

HPCL's physical performance metrics also showcased impressive growth. The company's refineries processed a record crude throughput of 22.33 MMT during the fiscal year, operating at 103.3% of installed capacity. Visakh refinery, in particular, achieved a milestone by processing 12.69 MMT of crude, with diesel production surpassing previous records by over 30%.

On the marketing front, HPCL achieved its highest-ever total sales volume of 46.82 MMT (including exports) during FY 2023-24, marking a growth of 7.8% from the previous year. Furthermore, the company gained a market share of 0.47% among PSU Oil Marketing Companies, indicating its competitive edge in the sector.

HPCL's stellar financial performance and robust operational metrics underscore its resilience and strategic agility in navigating challenging market conditions, positioning it for sustained growth and value creation in the future.