HPCL Q4 FY25 Earnings: Net Profit Declines 25% YoY; Announces 1:2 Bonus Issue and ₹16.50 Dividend

Hindustan Petroleum Corporation Ltd (HPCL) reported a consolidated net profit of ₹2,709.31 crore for the fourth quarter of FY25, marking a 25% decline from ₹3,608.32 crore in the same period last year. The downturn was attributed to reduced refining margins, with the company's Gross Refining Margin (GRM) falling to $6.95 per barrel in Q4 FY25 from $14.01 per barrel in Q4 FY24. 

Revenue Growth Amid Profit Decline

Hindustan Petroleum Corporation Limited (HPCL) reported its Q4FY25 earnings, revealing a mixed financial performance. The company's revenue from operations for the quarter stood at ₹1,22,000 crore, reflecting a 6% increase compared to ₹1,15,000 crore in the same period of the previous fiscal year. This uptick in revenue was primarily driven by higher sales volumes and improved operational efficiency.

Despite the revenue growth, HPCL's consolidated net profit for the quarter declined by 25% year-on-year to ₹2,709.31 crore, down from ₹3,608.32 crore in Q4 FY24. The decrease in profitability was attributed to lower refining margins, with the company reporting a gross refining margin (GRM) of $6.93 per barrel, compared to $8.50 per barrel in the preceding quarter. The reduction in GRMs was in line with the trend of international product cracks, impacting the company's refining business. 

Dividend and Bonus Issue

In a move to reward shareholders, HPCL's board approved a final dividend of ₹16.50 per equity share (pre-bonus), translating to ₹11 per share post-bonus for FY25. Additionally, the board announced a 1:2 bonus issue, granting one bonus share for every two shares held.

Record Throughput and Sales

HPCL achieved its highest-ever annual crude throughput of 22.33 million tonnes in FY25, operating at 103.3% of installed capacity, marking a 17% increase over the previous year. The Visakh refinery achieved a record crude throughput of 12.69 million tonnes, with diesel production surpassing previous records by over 30%. On the marketing front, HPCL achieved its highest-ever total sales volume of 46.82 million tonnes (including exports) during FY25, registering a 7.8% growth over the previous year.

Stock Market Reaction

After the earnings announcement, HPCL's share price closed at ₹396.80 on May 6, marking a 3.18% decline from the previous day's close of ₹409.85. On Wednesday, May 7, the stock showed a modest recovery, trading at ₹397.60, up 0.20% from the previous close as of 1.15pm. The company's market capitalization stood at ₹85,549.10 crore, with a 52-week high of ₹457.20 and a 52-week low of ₹287.55. 

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