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• Q4 PAT Increase: 18% year-on-year increase in Q4 PAT.

• Refining Thruput: Record performance with 25.27 million tonnes.

• Vizag Refinery Thruput: 15.3 million tonnes.

• Mumbai Refinery Thruput: Nearly 10 million tonnes.

• Marketing Volumes: Record 49.82 million tonnes for FY25.

• Domestic Market Sales Growth: 5.5%, outperforming industry growth of 4.2%.

• Pipeline Thruput: Highest-ever at 26.9 million tonnes.

• FY25 PAT: INR 7,365 crore.

• Q3 PAT: INR 3,023 crore.

• Q4 PAT: INR 3,355 crore.

• Dividend: Recommended at INR 10.5 per share.

• Warning! GuruFocus has detected 5 Warning Sign with BOM:500104.

Release Date: May 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Hindustan Petroleum Corp Ltd (BOM:500104) reported an 18% increase in Q4 PAT on a year-on-year basis.

• The company achieved record refining throughput of 25.27 million tonnes, with significant contributions from the Vizag and Mumbai refineries.

• Marketing volumes for FY25 reached a record 49.82 million tonnes, with a market share gain of 0.25% among peers.

• The company commissioned a state-of-the-art 5 MMTPA terminal at Chhara and signed its first major mid-term gas deal, strengthening its position in the gas business.

• The Board of Directors recommended a dividend of INR10.5 per share, reflecting strong financial performance.

Negative Points

• Hindustan Petroleum Corp Ltd (BOM:500104) absorbed INR10,900 crore of LPG under-recovery, impacting profitability.

• The company's debt remains elevated at INR56,000 crore to INR57,000 crore, with a debt to equity ratio of 1.38.

• The Barmer refinery project is still under progress, with significant debt tied up, and the full financial benefits are yet to be realized.

• Diesel sales growth was tepid, with only a 2.2% increase compared to the industry growth of 0.3%, indicating potential demand challenges.

• The company faces challenges in the petrochemical segment, with HMEL reporting a negative PAT due to depressed prices.

Q & A Highlights

Q: What is the CapEx outlook for Hindustan Petroleum Corp Ltd (HPCL) for FY26 and FY27, and what is the current leverage position at HMEL and HRRL? A: Rajneesh Narang, Director of Finance, stated that the CapEx for the current year was around INR 14,500 crore, and the next year is expected to be in the range of INR 13,000 crore to INR 14,000 crore. The GRMs for HMEL were around $9.3 per barrel, with a debt level of INR 35,000 crore. HRRL's current debt is around INR 35,000 crore, with a total debt tie-up of INR 48,000 crore.

Q: When is the Barmer refinery expected to be fully commissioned, and what are the expected margins once it stabilizes? A: An unidentified company representative mentioned that the crude distillation unit is expected to take in crude by October 1, with full commissioning of the petchem unit by January 1. Rajneesh Narang added that once fully operational, the refinery is expected to achieve a GRM of around $20 per barrel.