HPCL Posts 18% Surge in Q4 Net Earnings
HPCL Reports a ₹10.5 Dividend and Increases Net Profit by 18% to ₹3,355 Crore in Q4
Hindustan Petroleum Corporation Limited (HPCL), one of India’s leading oil marketing companies, announced its financial results for the fourth quarter of the fiscal year, reporting a notable 18% increase in net profit. The profit surged to ₹3,355 crore in the quarter ending March 2024, up from ₹2,846 crore in the same period last year. The company’s strong earnings report is a reflection of both operational efficiency and a favorable market environment. HPCL’s board has announced a final dividend of ₹10.5 per share, acknowledging shareholders’ confidence and support with appreciation.
This announcement comes at a crucial time for the Indian energy sector, which has faced volatility due to fluctuating global crude oil prices, inflationary pressures, and changing government policies. Despite these challenges, HPCL has shown resilience and delivered solid results, reinforcing its position as a major player in India’s oil and gas landscape.
Strong Financial Highlights
The company’s revenue from operations for the quarter stood at ₹1.16 lakh crore, marking a steady year-on-year performance. Though revenue growth remained relatively flat due to global oil price fluctuations, profitability improved on the back of better refining margins, inventory gains, and a recovery in marketing margins.
With Q4 earnings of ₹6,250 crore, HPCL’s earnings before interest, taxes, depreciation, and amortization (EBITDA) were much higher than ₹5,290 crore during the same time last year. The improvement in margins and efficient cost management played a key role in this growth.
Total expenses were controlled effectively, with cost optimization measures across refining and marketing operations contributing positively. The company also benefited from the softening of crude oil prices in early 2024, which provided relief on input costs.
Dividend Declaration Reflects Confidence
HPCL’s board of directors has declared a final dividend of ₹10.5 per equity share, complementing the company’s strong quarterly performance. This is in addition to any interim dividends declared earlier in the year, indicating the company’s healthy cash position and commitment to rewarding its investors.
The dividend will be subject to shareholder approval and will be paid within the statutory timeline. At the current market price of HPCL’s stock, the dividend yields a respectable return, making it attractive for both retail and institutional investors.
Refining Segment Shows Improvement
Two significant refineries run by HPCL are situated in Visakhapatnam and Mumbai. During the fourth quarter, both refineries operated at optimal capacity, benefiting from improved gross refining margins (GRMs). The average GRM for Q4 was $9.85 per barrel, compared to $7.45 per barrel in Q4 of the previous year.
This improvement in refining performance was driven by better product spreads in diesel and petrol, higher export realizations, and overall better efficiency in plant operations.
HPCL’s refinery throughput during the quarter stood at 5.04 million metric tonnes (MMT), marginally higher than last year, indicating steady demand and operational stability.
Marketing Segment Bounces Back
The marketing segment also showed a marked recovery. Sales volumes improved, particularly in petrol, diesel, aviation turbine fuel, and lubricants. HPCL’s retail network continued to expand, and the company strengthened its digital payment infrastructure and loyalty programs to enhance customer experience.
Total sales volume during Q4 was 10.1 MMT, up from 9.5 MMT in Q4 FY23. Domestic demand remained robust, especially in urban and semi-urban areas, driven by increased mobility, industrial activities, and economic recovery.
HPCL’s strategy to diversify product offerings, along with expanding its LPG and lubricants footprint, helped strengthen its market share in key categories.
Digital and Green Energy Initiatives
HPCL has also been investing in digital transformation and green energy projects to align with India’s evolving energy goals. The company continues to invest in electric vehicle (EV) charging infrastructure, biofuels, and hydrogen-based solutions.
During Q4, HPCL added over 100 EV charging stations across its fuel retail outlets and entered into partnerships with technology companies to develop future-ready clean energy solutions. These moves are part of the company’s broader ESG (Environmental, Social, and Governance) agenda.
Outlook for FY2025
Looking ahead, HPCL’s management expressed optimism for the coming financial year. With expectations of stable crude oil prices, continued growth in domestic fuel demand, and improving global economic conditions, the company anticipates further improvement in its financial and operational performance.
The company also plans to invest significantly in capacity expansion projects, pipeline infrastructure, and digital retail initiatives to maintain competitiveness and support long-term growth.
Furthermore, HPCL’s parent company, Oil and Natural Gas Corporation (ONGC), has outlined a roadmap for deeper integration and better synergy within the group, which could further enhance HPCL’s operational efficiency and profitability.
Conclusion
Strong financial success, operational discipline, and strategic vision are all evident in HPCL’s fourth-quarter results. With an 18% rise in net profit to ₹3,355 crore and the declaration of a ₹10.5 per share dividend, the company has delivered value to both its customers and shareholders. As India continues its journey toward energy security and sustainability, HPCL remains well-positioned to lead from the front and capitalize on emerging opportunities in the oil and gas sector.
The image added is for representation purposes only
