Hindustan Petroleum Corporation Limited (HPCL) has reported standalone revenue from operations of Rs. 1, 20,859 crore during 1Q FY25 as compared to Rs. 1, 19,044 crore during 1Q FY24. The company’s consolidated Profit after Tax (PAT) during this quarter is Rs. 634 crore as compared to Rs. 6,766 crore during 1Q FY24. The Standalone PAT during this quarter is Rs. 356 crore as compared to Rs. 6,204 crore during 1QFY24). The primary reasons for lower PAT are suppressed marketing margins on select petroleum products and reduced refining margins.

Average GRMs for 1QFY25 were US$ 5.03 per barrel (US$ 7.44 per barrel during 1QFY24). The reduction in GRMs is primarily due to lower cracks in line with the trend of international product cracks.

Physical Performance

HPCL Refineries recorded crude thruput of 5.76 MMT during 1QFY25 registering an increase of 6.7% over the thruput of 5.40 MMT during 1QFY24 despite planned shutdown in Refineries. Widening the company’s crude basket, HPCL Refineries processed imported crude Khafji and Varandey, and Indigenous crude KGDWN for the first time.

HPCL recorded highest-ever quarterly sales volume of 12.63 MMT (including exports) during 1QFY25 registering a growth of 6.6% as against 11.85 MMT during 1QFY24. The company also achieved market share gain of 0.25% amongst PSU Oil Marketing Companies during the period.

During 1QFY25, sale of Motor fuels was 8.02 MMT (growth of 2.7% over 1QFY24) and in case of LPG, the company achieved a sales volume of 2.07 MMT (growth of 8.7% over 1QFY24).

The Aviation business of the company recorded a robust growth of 31.3% over 1QFY24 with sales volume of 261 TMT during 1QFY25. New aviation refuelling facility at Kanpur was commissioned during the quarter taking the total count to 55.

In the highly competitive lubricants business, HPCL’s sales was 152 TMT during 1QFY25, (growth of 3.1% over 1QFY24).

During 1QFY25, the company recorded its highest-ever petrochemical sales of 30.3 TMT and introduced new grade HDPE Raffia in the polymer segment.

HPCL also recorded its highest-ever pipeline thruput of 6.83 MMT during 1QFY25 (growth of 5.2% over 1QFY24).

Update on ongoing Projects

HPCL invested Rs. 2,017 crore during 1QFY25 to further strengthen its refining and marketing infrastructure, including its equity investment in joint venture and subsidiary companies.

The construction of all Process units of the ongoing 9 MMTPA integrated grassroot Refinery-cum-Petrochemical project at Barmer, Rajasthan (HRRL) is progressing in full swing. The key Process units viz. Diesel Hydrotreating (DHDT) and Hydrogen Generation Unit (HGU) are under pre-commissioning. The physical progress for the other key Process units, i.e. CDU/VDU, DCU, PFCCU & VGO-HDT is around 92%, and the overall physical progress of the project has exceeded 80%. As on 30th June, 2024, the total commitments on the project are ₹ 69,845 crore and capital expenditure is ₹ 48,001 crore.

The 3.55 MMTPA capacity Residue Upgradation Facility at Visakh Refinery is in advanced stage of completion. The facility is expected to be mechanically completed in 2QFY25, and commissioning is expected in 3QFY25. The project is one of the largest and most energy efficient residue hydrocracker units in the world.

During this quarter, Mumbai Refinery commissioned HP De-Aromatized Kerosene (DAK) Unit which produces specialty De-Aromatized solvents based on indigenous technology developed by HP Green R&D Centre (HPGRDC) to fetch much higher realization than the alternate products.

During 1QFY25, HPCL commissioned 126 Retail Outlets across the country taking the total number of Outlets to 22,148. The company also commissioned 9 new LPG distributorships during the period taking the total count of LPG distributorships to 6,358.

New businesses/initiatives

Expanding its footprints in the City Gas Distribution (CGD) network, HPCL commenced Compressed Natural Gas (CNG) sales in Rajasthan's Geographical Areas (Tonk, Sawai Madhopur, Karauli and Dausa) during 1QFY25.

HPCL executed 3 Master Sales Purchase Agreements (MSPAs) with suppliers during 1QFY25 for sourcing Spot LNG cargoes, taking the total count to 8 MSPAs.

HPCL’s Lubricants business launched new brands Finit, Rustop HP-50 and premium Brand ‘Futur-X’ during 1QFY25. The company also launched HP Buddy Program for the promotion of lubricant sales in Retail Outlets. ‘Racer Station’ - an ambitious mechanic outreach program through branded 2W workshops across India was launched.

As part of value unlocking initiatives being undertaken for the Lubricants business, initiatives around supply chain, cost optimisation, product-mix spread and customer engagement have been rolled-out for improving the efficiency. Simultaneously, approvals for carve-out of the business are under active consideration of the Appropriate Authority.

HPGRDC filed 21 patents during 1QFY25 taking the total number of patents filed to 568, and 9 patents were granted during the quarter taking the total number of patents granted to 219.

As an initiative towards Make-In-India, HPGRDC has successfully indigenised & commissioned in-house Programable Logic Controller (PLC) system at CCR PSA unit of Mumbai Refinery by fully replacing the PLC system & program provided by the original technology licensor. With this initiative, HPCL has indigenised PSA PLC systems provided by only two major Hydrogen (H2) PSA licensors worldwide for Hydrogen purification. HPCL has achieved its position as first H2PSA licensor in India and third H2PSA licensor in the world.

HPCL continued its Digital Transformation journey and launched cutting-edge technology initiatives aimed at revolutionizing customer experience and enhancing operational efficiency across the supply chain. In a significant milestone, ‘HP Pay’ - HPCL’s loyalty app surpassed 1 million active customers with over 4 million transactions. The app with a host of features including UPI Scan and Pay feature, now offers real-time tracking of LPG booking to customers.

New infrastructure/facilities towards the transition to a low-carbon economy

A first-of-its-kind Solid Oxide based Electrolyser (SOE) was commissioned at HPGRDC for producing Green Hydrogen with 99.99% purity; this marks a significant step in evaluating this technology for futuristic hydrogen economy. This SOE system consumes around 25% lower energy than Proton Exchange Membrane (PEM) and Alkaline electrolysers.

The company’s first Biomass-based Compressed Bio Gas (CBG) Plant in Badaun, Uttar Pradesh, has produced 230.57 MT of CBG and commenced commercial sales during 1QFY25.

HPCL issued 8 new LoIs for CBG Plants having capacity addition of 54 TPD during 1QFY25, taking the total number of active LoIs to 115 with total CBG production capacity of 671.1 TPD.

HPCL achieved highest-ever Ethanol blending of 14.3% during the quarter and blended approx. 48.12 Crore litres of Ethanol in MS, to reduce GHG emissions by 9.62 lakh MT.

39 Retail Outlets commissioned CNG facilities during 1QFY25, taking the total number of Retail Outlets with CNG facilities to 1,729 as of 30th June 2024.

Electric Vehicle (EV) charging facilities were commissioned at 102 Retail Outlets during 1QFY25, taking the total number of Retail Outlets with EV Charging facilities to 3,705 as of 30th June 2024.

Solar panels were installed at 751 Retail Outlets during 1QFY25 taking the total number of Retail Outlets with solar power to 18,369 as of 30th June 2024. With this, 83% of HPCL’s Retail Outlet network is powered by renewable energy.