HPCL marks historical growth with Rs 6,204cr profit in Q1 FY24
Hindustan Petroleum Corporation Limited (HPCL) has made headlines with its announcement of a Decadal High Quarterly Standalone Profit after Tax (PAT) of ₹6,204 crore for the period Apr-Jun 2023, an astonishing increase of 192% over ₹3,223 crore PAT reported during Q1 FY24. Compared to a Standalone Net Loss of ₹10,197 crore during the corresponding period of the previous year, this growth illustrates the strength and resilience of HPCL in the current market.
HPCL’s Revenue from operations for Q1 FY24 stood at ₹1,19,044 crore, with Consolidated PAT at ₹6,766 crore, displaying a sharp turnaround from a Consolidated Net Loss of ₹8,557 crore during the corresponding period of the previous year. The average GRMs for Apr-Jun 2023 were US$ 7.44 per barrel.
Exceptional Physical Performance during this period was also evident. The company’s refineries processed the highest ever quarterly crude throughput of 5.40 Million Metric Tonnes (MMT) at 105.9% operating capacity. Visakhapatnam Refinery performed at enhanced capacity, achieving the highest ever quarterly production of HSD (2338 TMT) and Lube Oil Base Stock (137.5 TMT).
HPCL reports decadal high quarterly profit of Rs 6,204cr for Q1 FY24. Photo courtesy of Ask27/Wikimedia Commons.
On the marketing front, HPCL achieved its highest ever Quarterly total sales volume (including exports) of 11.85 MMT, growing by 10.7%. HPCL also registered a stellar QoQ growth in Motor Fuels, with Petrol sales (2.34 MMT) and Diesel sales (5.46 MMT) growing by 9.3% and 10.8% respectively. Additionally, HPCL recorded its highest ever Pipeline throughput of 6.49 MMT.
In terms of ongoing projects, HPCL migrated to SAP S/4 HANA in July 2023 and has invested ₹3,399 crore to strengthen Refining & Marketing infrastructure. Pre-commissioning activities for Full Conversion Hydro Cracker Unit (FCHCU) at Visakhapatnam Refinery are in final stage, aiming to operate at 13.5 MMTPA. The company’s ongoing 9 MMTPA integrated grass root refinery cum petrochemical project at Barmer, Rajasthan achieved financial closure, becoming the largest project finance transaction in the country.
HPCL commissioned 56 retail outlets, six new LPG distributorships, and Mega Lubes warehouses at various locations, enhancing storage, distribution, and regional customer service. Further, under the Aatmanirbhar Bharat initiative, HPCL completed the indigenization of Hydrogen Pressure Swing Adsorption (H2 PSA) Technology components and entered a technology partnership agreement for HI-GAS with KBR- USA.
The exceptional financial performance, key investments in infrastructure, new business initiatives, and a focus on technological advancements all combine to portray a promising future for HPCL and its stakeholders.