Hindustan Petroleum Corporation Limited (HPCL), one of India's leading oil and gas companies, has reported a robust financial performance for the first quarter, alongside a significant decision by its board to approve a substantial borrowing limit.

Financial Highlights

HPCL's financial results for Q1 showcase a remarkable improvement across key metrics:

• EBITDA: The company reported an EBITDA of ₹76.00 billion, a significant increase from ₹58.00 billion in the previous quarter.
• EBITDA Margin: Improved to 6.36% from 4.93% quarter-on-quarter.
• Net Profit: Surged to ₹43.70 billion from ₹33.50 billion in the previous quarter.
• Revenue: Slightly increased to ₹1.19 trillion from ₹1.18 trillion quarter-on-quarter.

Operational Performance

The company's operational metrics also showed strong results:

• Refinery Throughput: HPCL achieved a throughput of 6.66 Million Metric Tonnes (MMT), representing a 15.6% year-on-year growth.
• Capacity Utilization: Refineries operated at 109% of their nameplate capacity.
• Market Sales: Reached a record high of 13.04 MMT (including exports), growing by 3.2%.

Gross Refining Margin

HPCL's average Gross Refining Margin (GRM) for the quarter stood at $3.08 per barrel, indicating the company's refining efficiency in a challenging market environment.

Board Approves Borrowing Limit

In a significant move, HPCL's board has approved a borrowing limit of up to ₹100.00 billion. This decision provides the company with financial flexibility to support its ongoing operations and future growth initiatives.

Segment Performance

The downstream petroleum segment, HPCL's primary business, reported a profit before tax, interest income, interest expenditure, and dividend of ₹6,144.10 crore for the quarter.

Market Position

HPCL continues to strengthen its market position:

• Petrol (MS) Sales: Achieved highest-ever quarterly sales of 2.62 MMT, growing by 5.4%.
• CNG Sales: Recorded the highest quarterly volume of 310 TMT, with a 22.1% growth.
• Aviation Fuel: Sales reached 291 TMT, registering an 11.4% growth and maintaining continuous market share gains.

Strategic Initiatives

The company has launched several strategic initiatives to enhance profitability and efficiency:

• Project Samriddhi: An EBITDA improvement program targeting a margin improvement of $0.50 per barrel.
• Project Abhyuday: Focused on increasing throughput per retail outlet.
• Digital Transformation: Implemented cloud-based CRM, Central Energy Monitoring System, and Hyperlocal search Marketing to increase efficiencies.

Sustainability Efforts

HPCL continues to make strides in sustainability and energy transition:

• Commissioned 1 Compressed Biogas (CBG) plant during the quarter.
• Achieved 5.6 MWp mechanical completion for the Delhi Greening Project.
• Added 33 new CNG outlets, bringing the total to 2,071.
• Solarized 90 additional retail outlets, with 94% of outlets now powered by renewables.

HPCL's strong Q1 performance, coupled with the board's approval for a significant borrowing limit, positions the company well for future growth and expansion in India's dynamic oil and gas sector.

Hindustan Petroleum Corporation Limited (HPCL) has announced a remarkable financial performance for the first quarter, with its net profit skyrocketing by 1,128% year-on-year to ₹4,370.87 crore. This substantial increase in profitability showcases the company's robust operational efficiency and strategic management in a dynamic market environment.

Financial Highlights

• Revenue: HPCL reported a total income of ₹1,20,657.65 crore for Q1, compared to ₹1,21,429.36 crore in the same quarter last year.
• EBITDA: The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) stood at ₹8,124.00 crore, indicating strong operational performance.
• Earnings Per Share: Basic and diluted earnings per share rose significantly to ₹20.54, up from ₹1.67 in the corresponding quarter of the previous year.

Operational Performance

HPCL demonstrated strong operational metrics across its business segments:

Refinery Operations

• Crude throughput increased to 6.66 Million Metric Tonnes (MMT), up 15.6% year-on-year.
• Capacity utilization reached an impressive 109%.
• Visakh Refinery achieved its highest-ever quarterly crude throughput of 4.16 MMT, operating at 111% of its nameplate capacity.
• Mumbai Refinery registered a throughput of 2.50 MMT, operating at 106% of its nameplate capacity.

Marketing Operations

• Total sales volume (including exports) hit a record high of 13.04 MMT, growing by 3.2%.
• Domestic sales stood at 12.26 MMT, while exports were 0.78 MMT.
• Petrol (MS) sales reached an all-time high of 2.62 MMT, growing by 5.4%.

Pipeline Operations

• Throughput for Q1 was 6.70 MMT.

Financial Position

Strategic Initiatives and Future Outlook

HPCL has embarked on several strategic initiatives to enhance its performance:

1. Project Samriddhi: Launched in May, this EBITDA improvement program aims to achieve a margin improvement target of $0.50 per barrel on total sales quantity.

2. Project Abhyuday: This initiative focuses on increasing throughput per outlet to enhance asset productivity and efficiency.

3. Digital Transformation: The company has introduced several digital initiatives, including a Cloud-based CRM, Central Energy Monitoring System, and Hyperlocal search Marketing to increase efficiencies.

4. Sustainability Efforts:

   • Commissioned one Compressed Biogas (CBG) plant under the SATAT initiative.
   • Achieved 5.6 MWp mechanical completion for the Delhi Greening Project.
   • Added 90 solarized retail outlets, bringing the total to 22,443 - now 94% of outlets are powered by renewables.

5. R&D Achievements: HP Green R&D Centre has filed a total of 669 patents, with 259 granted so far.

HPCL's Chairman and Managing Director commented, "Our exceptional Q1 performance reflects HPCL's resilience and adaptability in a challenging market environment. We remain committed to operational excellence, sustainability, and creating long-term value for our stakeholders."

With its strong financial results, operational improvements, and strategic initiatives, HPCL appears well-positioned for continued growth and success in the evolving energy landscape.

Note: All figures are in Indian Rupees (₹) unless otherwise stated.