State-run Hindustan Petroleum Corporation (HPCL) on Thursday reported a 25 per cent year-on-year (y-o-y) decline in its consolidated net profit of ₹2,709 crore in Q4 FY24 on account of lower refining margins and higher costs.

However, it reported a multi-fold growth in profits on a sequential basis beating market estimates. The ₹2 per litre cut in retail prices of petrol and diesel, with effect from March 15, also impacted earnings, albeit on a limited scale.

The oil marketing company’s consolidated total income grew 3 per cent quarter on quarter (q-o-q) and 6 per cent year on year (y-o-y) to ₹1.22-lakh crore in Q4 FY24.

HPCL reported lower average Gross Refining Margins (GRMs), gross of export duty, during Q4 FY24 at $6.95 per barrel compared with $14.01 a year-ago. Reduction in GRMs is in line with the trend of international product cracks.

The OMCs consolidated total expenses also rose 1 per cent q-o-q and 7 per cent y-o-y to ₹1.19-lakh crore.

HPCL’s Board recommended issuing bonus equity shares in the ratio of one equity share of ₹10 each for every two equity shares of ₹10 each held, subject to approval. The board also recommended a final dividend of ₹16.50 (pre-bonus) per share, which translates into a final dividend of ₹11 (post-bonus) for FY24, subject to approvals. This is in addition to the interim dividend of ₹15 per share paid during the year.

Operational metrics

HPCL refineries processed the highest-ever crude throughput of 22.33 million tonnes (mt) in FY24 operating at 103.3 per cent of the installed capacity, registering a y-o-y increase of 17 per cent.

Visakh refinery has recorded the highest-ever crude throughput of 12.69 mt during the year, with diesel production of 5.7 mt surpassing the previous highest production by more than 30 per cent.

HPCL also recorded the highest-ever pipeline throughput of 25.83 mt with a y-o-y growth of 11.0 per cent.

On the marketing front, the OMC achieved the highest-ever total sales volume of 46.82 mt (including exports) during FY24 registering a y-o-y growth of 7.8 per cent. The company also achieved a market share gain of 0.47 per cent amongst PSU OMCs.

FY24 shines

For FY24, the Maharatna company reported a consolidated net profit of ₹16,015 crore against a net loss of ₹6,980 crore in FY23. However, total consolidated income was lower at ₹4.64 crore (₹4.68 crore).

Average GRM during FY24 was $9.08 per barrel ($12.09), before factoring-in the impact of Special Additional Excise Duty and Road & Infrastructure Cess levied on export of select petroleum products.

Other Expenses for FY24 includes ₹248.85 crore (₹1,810.43 crore) towards loss on account of foreign currency transactions and translations.

During FY24, HPCL reported highest-ever petrol sales of 9.2 mt with a y-o-y growth of 6 per cent and highest-ever diesel sales of 20 mt with a growth of 4 per cent.

It also posted highest-ever LPG sales of 8.6 mt with a growth of 5.5 per cent and highest-ever jet fuel sales of 878 thousand tonnes with a y-o-y growth of 27 per cent and highest-ever natural gas sales (Industrial) of 379 thousand tonnes with a y-o-y growth of 79 per cent.