Chennai Petroleum Corporation Ltd — Q4 FY26

Chennai Petroleum Corporation Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Ikb7HsZ6fW0 Published: 2 weeks ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to the Chennai Petroleum Corporation Limited Q4 FY26 earnings 0:09 9 seconds conference call hosted by ARA Securities. 0:13 13 seconds As a reminder, all participant lines will be a listen mode and there will be an opportunity for you to ask question 0:20 20 seconds after the presentation concludes. Should you need assistant during the conference call, please signal an operator by 0:27 27 seconds pressing star then zero on your touchstone phone. Please note that this conference has been recorded. I now hand 0:35 35 seconds the conference over to Mr. Gagand Digshit from Arara Securities. Thank you and over to you sir. 0:41 41 seconds Yeah, thank you. Uh so please go ahead. 0:54 54 seconds Hello. 0:56 56 seconds Yeah. Yeah. Yeah. Thank you. Uh a a very warm welcome to everyone to discuss uh Chennai Petroleum Qur FI26 result. It is 1:05 1 minute, 5 seconds our pleasure to be able to bring to you the management of Chennai Petroleum led by Rohit Kumar Araal uh that's who uh 1:15 1 minute, 15 seconds and other senior executives of the company. So with these words I would now hand over the conference to the KMI petroleum benefit. Over to you sir. 1:26 1 minute, 26 seconds Thank you. 1:28 1 minute, 28 seconds Good afternoon everyone. I am Rohit Agraala director finance Chennai Petroleum Corporation Limited and with 1:34 1 minute, 34 seconds me are my colleagues uh Mr. Anil Sahani CGM technical services Mr. Dhan Raj CGM 1:42 1 minute, 42 seconds Finance Mr. Rajkumar CGM technical you know and they are part of this investor conference. They'll be happy to reply to 1:50 1 minute, 50 seconds any of your specific queries. Uh first of all let me thank you again for joining this call today. On behalf of the PCL team I welcome you all to this 1:58 1 minute, 58 seconds postquarter 4 result con. Before we begin I would like to mention that some of the statements that would be making 2:05 2 minutes, 5 seconds during this con call are based on our assessment of the matter and we believe that these statements are reasonable. 2:12 2 minutes, 12 seconds However, the result will be different depending on the number of events and uncertaintities. Further, this con is on 2:20 2 minutes, 20 seconds Q4 annual results and we'll be limiting our discussion on the results. Any other queries shall be taken separately by our 2:28 2 minutes, 28 seconds team. Our results of quarter 4 202526 are with you now for some few hours. I 2:38 2 minutes, 38 seconds hope some of you would have analyzed them and if you have any specific query on that we'll take up this during the conference call. Uh again uh to give my 2:47 2 minutes, 47 seconds brief on the matter our refineries continued stellar performance on both physical and financial parameters during this quarter and the financial year full financial year 202526. 2:58 2 minutes, 58 seconds Let me start with the physical performance. 3:01 3 minutes, 1 second CPCL achieved a higher highest ever crude throughput of 11.71 MMT million metric ton which which 3:10 3 minutes, 10 seconds equivalents to 112% of installed capacity breaking records of our previous best of 11.64 64 MMT achieved in financial year 2023 24. 3:23 3 minutes, 23 seconds In quarter 4 of the current financial year, EPL achieved a crude throughput of 2.93 3:29 3 minutes, 29 seconds MMT which is also 111% of installed capacity. 3:34 3 minutes, 34 seconds This reflects our agility to continue performing at the highest level tackling global challenges. The highest ever 3:43 3 minutes, 43 seconds report has been achieved despite a planned shutdown of one of our three crude units for about a month during the year. 3:52 3 minutes, 52 seconds CPCL achieved the best ever full swing loss of 7.73% best MBN of 69.8 8 and best EI of 84 in 4:03 4 minutes, 3 seconds the current financial year 2526 surpassing our previous best records achieved in the last financial year 4:12 4 minutes, 12 seconds driven by the effective implementation of energy conservation initiative and significantly improved operational 4:19 4 minutes, 19 seconds reliability concluded the financial year on a high note achieving the highest ever 4:26 4 minutes, 26 seconds production level of 5.139 MMT T for diesel HSD and 1.318 MMT of petrol that 4:34 4 minutes, 34 seconds is MS an impressive testament of the refinery's outstanding operational performance. 4:41 4 minutes, 41 seconds Further highest ever distillated rate of 79.1% beating our previous record of 77.6% 4:50 4 minutes, 50 seconds set in 201920 was also achieved during this year only. 4:56 4 minutes, 56 seconds CPCL achieved highest ever LPG production of 447 TMT overcoming 5:03 5 minutes, 3 seconds previous record of 404 set in 2023 24 with global uncertainties affecting the availability of LPG all over the world. 5:14 5 minutes, 14 seconds CPCL is happy to step up the requirement when the nation needed it. This once again reiterate our unwavering 5:22 5 minutes, 22 seconds commitment to serve the nation and increase our efficiencies. 5:28 5 minutes, 28 seconds CPCL achieved the highest ever annual production and dispatch of value added niche products like LS NFTA 5:36 5 minutes, 36 seconds u pharmagrade hexane NTO all these again have reached you know peak production and dispatches. 5:45 5 minutes, 45 seconds CPCL again uh had a good R&D consumption again know to look forward to economics 5:53 5 minutes, 53 seconds to bring in more economics and bring in more sustainability you know and environmental commitments during the financial year we processed 6:01 6 minutes, 1 second 52% high sulfur due to our flexible crude sourcing mechanism we have strategically secured 6:08 6 minutes, 8 seconds 55 to 60% through long-term agreements the remaining on short-term basis from diverse sources allowing us to enhance flexibility and 6:17 6 minutes, 17 seconds capitalize on price economies irrespective of what situation we are in. 6:23 6 minutes, 23 seconds Further we have launched trial runs of two new products. One is pentain the other is textile grade NTO. 6:31 6 minutes, 31 seconds PPCL achieved the quartile one position in seven indices of international solomon benchmarking study which 6:39 6 minutes, 39 seconds includes energy intensity and operational availability. And in the country this was the only second refinery you know where uh you know we 6:47 6 minutes, 47 seconds move to first quarter in energy parameters. 6:51 6 minutes, 51 seconds CPCL is committed to develop new schemes on energy efficiency further fuel loss reduction and develop and enhance 6:58 6 minutes, 58 seconds product of value added products. Now I move to financial performance. 7:03 7 minutes, 3 seconds The gross refining margin GR for financial year 202526 was $9.2 2 per barrel as compared to Singapore benchmark of $5.83 per barrel. 7:17 7 minutes, 17 seconds Our current GRM have been at a premium to Singapore GRM consistently over the past five six years mainly on account of 7:25 7 minutes, 25 seconds continuous optimization of refinary production product distribution optimized through procurement and efficient handling of processing capabilities. 7:34 7 minutes, 34 seconds If I move to quarter 4, the GRM for quarter 4 was 13.75 barrel as compared to Singapore benchmark of $8.70 per 7:43 7 minutes, 43 seconds barrel which again reiterates that uh all these efficiencies are constant continuous and are being sustained over over each period. 7:55 7 minutes, 55 seconds All these have been achieved through optimized crude mix selection of grades based on benchmark 8:02 8 minutes, 2 seconds and then you know we have compared the premium discount with respect to our efficiencies that we can arrive out of them. 8:11 8 minutes, 11 seconds Our leverage position is now stands at 0.18. Our debt equity stands at 0.18 at 8:18 8 minutes, 18 seconds a gross level as compared to 0.39 last year. 8:23 8 minutes, 23 seconds Again that uh you know uh that tells us that our borrowings have subsided uh significantly and then for our future 8:31 8 minutes, 31 seconds projects the company possesses significant capacity to borrow and implement profitable schemes. 8:38 8 minutes, 38 seconds Uh on a gross basis the borrowings are 1,900 cr but uh on a net basis it is less than 1,000 cr to be precise 973 8:46 8 minutes, 46 seconds crores. And if I take the net borrowing that hardly is 0.09 09 uh the DR is only 0.09 09 less than 0.1. 8:56 8 minutes, 56 seconds Further uh further you know the ever performance 9:04 9 minutes, 4 seconds um our disciplined and consistent dividend payments uh we also we also take care of the uh investors all investors including minority investor. 9:15 9 minutes, 15 seconds uh during the year for the first time CPCL paid an interim dividend and we are happy to announce that in addition to the interiming dividend of rupees 8 per 9:23 9 minutes, 23 seconds equity share of 10h uh the board has recommended a final dividend of 54 rupees per share you know 9:31 9 minutes, 31 seconds making taking the total dividend for the year to 62 rupees per share you know which again is highest ever 9:39 9 minutes, 39 seconds now we'll move to you know future capex and you know um development program. 9:45 9 minutes, 45 seconds During the current year, the capex was 856 crores as as compared to 673 crores in the previous year. Some of the 9:53 9 minutes, 53 seconds important projects that will be taken up is group two, group three LOBS for which all approvals are in place and the project execution has started in full swing. 10:06 10 minutes, 6 seconds uh even our retail outlet endeavor uh for which we had taken 300 uh licenses 10:13 10 minutes, 13 seconds has started and this year that is 2627 we'll see a lot of commissioning out of them. 10:22 10 minutes, 22 seconds Few more governance issues I'd like to highlight here and I hope the investors will be happy to note them. uh CPCL was 10:30 10 minutes, 30 seconds uh on the ESG parameters CPCL achieved a S&P global ESG score of 60 for the year 2025 uh in their yearly corporate 10:39 10 minutes, 39 seconds sustainability assessment we achieved this uh the second highest S&P global ESG score in oil and gas in India and 10:46 10 minutes, 46 seconds this can be seen along with the Solomon index so from a technical side as well as on a sustainability side we are 10:54 10 minutes, 54 seconds striving and our progresses year on year are pretty significant And all this has also led 11:02 11 minutes, 2 seconds that all this also led CPCL was conferred the gold seal you know award from ICI on excellence in financial 11:09 11 minutes, 9 seconds reporting by the institute and this is one of the prestigious reports uh prestigious awards by ICI. 11:16 11 minutes, 16 seconds Now with all this I would like to say the uncertaintities due to logistical constraint volatility of crude oil 11:24 11 minutes, 24 seconds prices do do pose challenges. While these are broader factors that may drive volatility, we remain at CPCL focused on 11:33 11 minutes, 33 seconds things we can control and that is our operating and that is operating our refinery efficiently in a safe, reliable and 11:42 11 minutes, 42 seconds environmentally responsible manner and continue to focus on key metrics of controlling the operating costs as well 11:49 11 minutes, 49 seconds as maintaining capital discipline by adering to optimum return on value added and growth projects and thereby by 11:57 11 minutes, 57 seconds honoring our commitment to create long-term value for our shareholders. To summarize, we continue to deliver resilient operational and financial 12:05 12 minutes, 5 seconds performance and see the momentum to continue in the new financial year as well. Thank you all of you once again and we are now open for question. 12:17 12 minutes, 17 seconds Thank you. We will now begin the question and answer session. Anyone who wishes to ask question may press star t 12:24 12 minutes, 24 seconds and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 12:31 12 minutes, 31 seconds two. Participants are requested to use handset while asking a question. 12:37 12 minutes, 37 seconds Ladies and gentlemen, we'll wait for a moment while the question Q assembles. 12:44 12 minutes, 44 seconds The first line is from Yogesh Patil from Doat Capital. Please go ahead. 12:53 12 minutes, 53 seconds Thanks for taking my question sir and congratulations for the good set of numbers. Sir, the question is related to 13:00 13 minutes the challenges CPCL is facing at the time of purchasing the real barrels or the physical barrels from the 13:07 13 minutes, 7 seconds international market. That's one. Second question is related to crude purchasing contracts in the current context mostly 13:15 13 minutes, 15 seconds focusing on the March month and the April month. Are you still purchasing all the crude quantity on the spot or 13:22 13 minutes, 22 seconds dated basis or some portion of the crude is still contracted basis you are taking from the countries? I will take a pause here. 13:32 13 minutes, 32 seconds Thank you. So I'll reply the first question first. 13:37 13 minutes, 37 seconds Uh as far as crude purchases are concerned um you can see from our performance that not only for the whole year our capacity utilization is 112%. 13:46 13 minutes, 46 seconds Even in quarter four which was you know influenced by geopolitical events our 13:53 13 minutes, 53 seconds you know performance is 111%. So we do agree there were challenges there were uncertainties you know but we overcome 14:01 14 minutes, 1 second them through continuous uh collaboration uh multiple sources keeping our channels 14:08 14 minutes, 8 seconds open and then resolving uh obstacles. So that is how we could process all those crew. Now on your issue on March and 14:17 14 minutes, 17 seconds April uh uh if you want to ask us are we doing everything on squat? No. Our to term 14:25 14 minutes, 25 seconds contracts are intact and barrels are flowing out of our term contracts. But yes yes there have been some impact 14:32 14 minutes, 32 seconds which has been made good by spot. But when we look forward, you know, all our term contract suppliers are reassuring 14:41 14 minutes, 41 seconds ourselves that all the commitments will be honored by them. 14:47 14 minutes, 47 seconds Okay, let let me quickly reframe the same questions. Uh if you could give us idea what is the spot or dated uh crude 14:56 14 minutes, 56 seconds purchase and what is the portion uh term contracts uh volume you are getting? 15:01 15 minutes, 1 second That's one. Secondly, uh are you still paying a premium on the term contracts also? Uh I mean the market is aware that 15:09 15 minutes, 9 seconds on a spot or dated basis uh the refiners are paying uh premiums but on a term contracts also you are preing paying a premiums also. 15:20 15 minutes, 20 seconds Yeah. So again uh uh I told normally our term is 55 15:27 15 minutes, 27 seconds to 60% you know there is not a major variation. Now one or two barrels plus minus is happening but uh you know no 15:35 15 minutes, 35 seconds significant change has happened there in the past or looking forward also we don't see a major change one or two 15:42 15 minutes, 42 seconds barrel one or two shipment caros one or two shipment cargos maybe here and there which will be made good going forward. 15:49 15 minutes, 49 seconds Uh as far as uh term or spot premiums, see the premium uh you know the um the 15:58 15 minutes, 58 seconds term cargos are based on OS you know the OSPs are fixed for a tenor and we procure. So there is no change in 16:07 16 minutes, 7 seconds that formula only thing month to month depending on spot and other criteria they u you know these companies declare 16:14 16 minutes, 14 seconds their OSP. Still if you ask me that our agreement is to purchase at OSP the term we continue to purchase at OSP. 16:24 16 minutes, 24 seconds Okay sir my next question is related to uh export duties on the diesel and the ATF in the current context for these 16:31 16 minutes, 31 seconds current fortnite export duties are much much higher than the cracks on the same product diesel and ATF. So for the 16:38 16 minutes, 38 seconds current Fortnite um are we are we in the positive on the diesel and the ATF cracks or you can correct me on this side. 16:48 16 minutes, 48 seconds So I will reply like this export is not a compulsion to me export is one of the options available to me 16:57 16 minutes, 57 seconds you know to optimize my margins and realization. So main products like HSD you know uh MS everything I see all my 17:07 17 minutes, 7 seconds markets I see look at all my realization and then whatever mix and combination is best profitable for the company those kind of things we do. 17:19 17 minutes, 19 seconds So you know for compulsion we are not booking anything on export. 17:24 17 minutes, 24 seconds Okay. But uh but the question was quite simple sir from my side. Uh and I I would be happy to take uh your answer on 17:31 17 minutes, 31 seconds that very simple note that the cracks we are realizing on the diesel and ATF in the current context of the export duties 17:38 17 minutes, 38 seconds which are higher are we in the positive range or in a negative range? 17:42 17 minutes, 42 seconds There there there I didn't knowingly know because uh what you're asking and what is my knowledge is very different. 17:48 17 minutes, 48 seconds See to my understanding the export duty or that sess is part of the realization 17:55 17 minutes, 55 seconds part of the broad crack and it is not higher than the crack but then that doesn't make a difference for CPCL 18:02 18 minutes, 2 seconds because when I have multiple options and I have the option of both selling domestic as well as export you know and till the time I'm able to take a 18:10 18 minutes, 10 seconds commercial decision based on merit I think intermittent abnormal indication in the market doesn't impact me and my profitability. 18:21 18 minutes, 21 seconds Fair enough sir. Fair enough sir. LPG maximization in output uh how much it has impacted to our GRM during the March 18:29 18 minutes, 29 seconds month and what kind of impact we will see in the Q1 FR27. 18:34 18 minutes, 34 seconds Uh I told instead of 404 we have gone to 447 that's about 10%. You know and this has not impacted our margins. 18:44 18 minutes, 44 seconds Okay. And the last one s capex guidelines for the next year and the guidance on the date levels if you could provide that would be helpful. 18:51 18 minutes, 51 seconds So I told you know the debt positions are very very comfortable on a net basis is hardly.1 you know DER and less than 19:00 19 minutes a,000 cr less than a,000 cr borrowing so we are very very comfortable there uh as I said Lovs have been approved all 19:08 19 minutes, 8 seconds clearances are available with us Lovs project group two group three Lovs project is 1,600 crores uh the retail outlet project is 400 19:16 19 minutes, 16 seconds crores so that makes it 2,000 crores this 2,000 cr will happen over 2 to three Besides every year you can assume another 500 crores as your normal capex. 19:28 19 minutes, 28 seconds Okay. Thanks. Thanks a lot sir. This was really helpful. 19:36 19 minutes, 36 seconds Thank you. The next question is from the line of Nilles Kugi from HTSC securities. Please go ahead. 19:45 19 minutes, 45 seconds Yeah. Uh good afternoon sir. Sir firstly my question is uh uh on this throughput 19:52 19 minutes, 52 seconds again. So you mentioned that uh you have done the highest ever throughput for FI26 but are you confident that this 20:00 20 minutes throughput level will remain uh at 110 11% for in FI27 at least for first half 20:09 20 minutes, 9 seconds or will there be any challenge in maintaining that elevated utilization? 20:16 20 minutes, 16 seconds So uh we all have to understand what are the parameters or why a company can perform more than 100% or why a company 20:22 20 minutes, 22 seconds cannot perform more than 100 100%. See these capacities are built on certain days of operation uh to my understanding 20:30 20 minutes, 30 seconds 300 30 days standard days. So what is happening is if my upkeep is good, if unplanned interruptions are not 20:38 20 minutes, 38 seconds happening, if you know uh uh day-to-day operational bottlenecks are sol solved immediately, then I have additional leeways where I'm able to operate this 20:47 20 minutes, 47 seconds and because the fixed costs are pretty high in a refining kind of a situation. 20:51 20 minutes, 51 seconds If I'm able to take this leverage, it is not only adding to throughput, it is al also adding you know to the divisor effect and my performances, my matrixes, 21:00 21 minutes my profitabilities you know are pretty good and what I am saying if it is one year one off year you know we can 21:07 21 minutes, 7 seconds analyze but what we are saying consistently for the last four to five years we have been exceeding our you 21:15 21 minutes, 15 seconds know 10.5 installed capacity. It means what the operational philosophy has become very very stronger you know some 21:23 21 minutes, 23 seconds of these issues you know the excellence has come in so now you will ask me the projection first just to reply you in 21:31 21 minutes, 31 seconds the first 6 months we don't see you know any any any amendai so uh so it may not 21:38 21 minutes, 38 seconds be there but yes maybe close to September October we have a scheduled MNI of one of our refinary units so 21:46 21 minutes, 46 seconds these throughuts will be dependent on fact but we also told in the last year that in spite of one of the crude unit 21:52 21 minutes, 52 seconds you know M and I for one month you know this was achieved so uh and I must tell you the forum the investor forum this 22:01 22 minutes, 1 second company is also trying to look look into some of the possibilities low cost debottlenecking you know and we are talking to EIL so idea is what when we 22:10 22 minutes, 10 seconds are consistently able to perform this can we do some debottlenecking or some enhancement in our secondary processes you on a systematic basis with a low 22:19 22 minutes, 19 seconds cost capex and can we sustain even higher margins than this. Okay. 22:28 22 minutes, 28 seconds Okay. Yeah. Nice. Thanks for this question. So my second question is on the refinary transfer price. So are you 22:37 22 minutes, 37 seconds selling our petrol and diesel at the refinary transfer price to the oil marketing companies or are you selling at any discount? 22:49 22 minutes, 49 seconds No, our agreement uh you know uh you as you would be aware uh close to about 90% 22:55 22 minutes, 55 seconds of our product mostly HSDMS you know it goes to to Indian oil. We have a tie up with them a long-term agreement with them for selling and the agreement is at 23:04 23 minutes, 4 seconds RTP transfer. 23:10 23 minutes, 10 seconds Oh, thank thanks a lot. Thanks for answering my question. Thank you, sir. 23:17 23 minutes, 17 seconds Thank you. The next question is from Sabri Hazarika from MK Global Finance Service. Please go ahead. 23:26 23 minutes, 26 seconds Yeah, good afternoon sir. So firstly u on uh on a few bookkeeping questions you mentioned 13.75 was your reported GRM 23:34 23 minutes, 34 seconds for Q4 right H and what would be the core GRM 10.3 23:44 23 minutes, 44 seconds would be core GRF 10.38 three 10.3 right 23:52 23 minutes, 52 seconds okay and secondly uh what could be the forex loss for the for the quarter and For the year, 24:00 24 minutes for the quarter it would be 150. 24:07 24 minutes, 7 seconds For the quarter it is 350 350 cr. 24:09 24 minutes, 9 seconds Uh for the quarter it is about 200 cr approximately about 200 cr and the for the for the whole year it will be around 600 crores. 24:18 24 minutes, 18 seconds 34. Okay sir. 24:21 24 minutes, 21 seconds Sorry that annual figure you can correct to 350 crores. Approximately 350 crores. 24:25 24 minutes, 25 seconds 350 crores. Take the second is basically um in the current scenario only. So I think the previous participant also 24:32 24 minutes, 32 seconds asked you. So uh ideally what our understanding was that I mean the government comes up with the Arab Gulf numbers we take the Arab Gulf then we 24:41 24 minutes, 41 seconds minus it with the Indian basket or say Brent if we assume it uh that to be the benchmark and then what happens is that whenever the export duty is imply 24:49 24 minutes, 49 seconds imposed the domestic RTP also gets adjusted by that amount. uh so right now I think it is too early I guess u uh two 24:56 24 minutes, 56 seconds times only it has been changed but right now the cracks are the net back after the export duty adjusted in domestic RTP 25:04 25 minutes, 4 seconds is negative uh so is it what is right or uh you are saying that you are still getting good GRM even after this uh 25:11 25 minutes, 11 seconds export duty and current cracks uh so I'll tell you the uh what is running now today as I'm speaking to you 25:18 25 minutes, 18 seconds as I am speaking to you the net GRM based on realize RTP is pretty close to long-term average. 25:27 25 minutes, 27 seconds Okay. Okay. Because there was some news regarding the OMC is also asking uh additional discounts on RTP. I think 60 25:36 25 minutes, 36 seconds rupees per liter. Some number was quoted in the media. I think I think you will agree with me. 25:41 25 minutes, 41 seconds I can tell what I know and what I observe. Right. Right. Right. 25:45 25 minutes, 45 seconds About reacting to media reports I am or may not be as good as you. 25:51 25 minutes, 51 seconds Right sir. So right now you are near the long-term average GRM that is that is what is the current yeah when I when I'm speaking that is 26:00 26 minutes today when I compare today's net GRM or net cracks to that way I find it is to be close to long-term average. 26:09 26 minutes, 9 seconds Got it. In both I mean in diesel and ATF both right? Yes. 26:14 26 minutes, 14 seconds Okay. And currently what is the crude mix of the company? how much you are getting from where and what could be the average price at which you are getting. 26:25 26 minutes, 25 seconds See um the price whatever I tell you will be wrong because what is happening what we have witnessed we have never 26:32 26 minutes, 32 seconds seen you know we never thought BDD will be negative 20 then BD will be positive 20 so there is a wild fluctuation that 26:39 26 minutes, 39 seconds is happening I think you know for a company to operate uh the present 1 day 2day scenario is not a scenario to 26:46 26 minutes, 46 seconds discuss you know but um but I can tell you my mix as I said uh you know this 26:53 26 minutes, 53 seconds refinery's cap capable of 70% high sulfur you know up to 70% high sulfur but depending on the BDD whether sweet 27:01 27 minutes, 1 second crude is cheaper or sore crude is cheaper I source like in the current year I told we source 52% HS so we 27:08 27 minutes, 8 seconds instead of 30% I source 48% LS because I found LS is cheaper than HS so if I'm 27:15 27 minutes, 15 seconds able to process cheaper low sulfur crude then I'm getting more yield I'm getting less so loss my profitability are increasing so I'm I'm harnessing 27:24 27 minutes, 24 seconds assessing these opportunities available in the market. I'm checking what is my optimum potential and then I'm doing best to increase the margins and the 27:33 27 minutes, 33 seconds profit. No, geographically I I wanted to know geographically if I divide it between say Middle East, Russia and others then what would be the mix. 27:42 27 minutes, 42 seconds So I will say uh let me start with India maybe India would be around 10%. Bombay high and others. Okay. 27:48 27 minutes, 48 seconds U 25 30% maybe Russia and uh uh 27:55 27 minutes, 55 seconds yes and the rest would be mostly uh middle east countries bearing 5 to 10% Africa and US groups 28:04 28 minutes, 4 seconds and this middle east is basically that Saudi west coast I mean Red Sea volumes that it also includes Iraq 28:12 28 minutes, 12 seconds Iraq is flowing currently not immediately I told you on see I I told on a immediate basis you know any 28:20 28 minutes, 20 seconds judgment or any call from my side has no relevance because every day it is changing. So I told how I am designed and how I'm processing. 28:29 28 minutes, 29 seconds Right sir. And sir just a last small question how much would be your current crude and product inventory days? 28:36 28 minutes, 36 seconds See typically I think uh if I don't take into allege an operation kind normally my inventory days are 20 odd days 20 odd 28:46 28 minutes, 46 seconds days uh because the situations are little difficult. So I operate with a flexibility from 5 7 10 days to 15 18 28:54 28 minutes, 54 seconds days I operate depending on day-to-day basis when a cargo arrives suddenly it comes to my comfort uh and by the time 29:01 29 minutes, 1 second next cargo comes I keep minimum distance so that my operations are not interrupted and this is crude plus product both 29:10 29 minutes, 10 seconds no I talked only about crude see product you know uh the dispatches are happening to Indian oil and the facilities are nearby close to my facilities. 29:19 29 minutes, 19 seconds Okay. Uh so there there is no change from earlier and those days are pretty normal very few few days of uh you know hardly few days. 29:27 29 minutes, 27 seconds Okay. Few days of product inventory you generally keep because you are in like embedded with IO. Okay. 29:33 29 minutes, 33 seconds Okay. Thank you so much. Thanks a lot and all the best. Thanks. Thank you. 29:40 29 minutes, 40 seconds Thank you. The next question is from Bijit Nutkani from UTI AMC. Please go ahead. 29:50 29 minutes, 50 seconds Uh yeah sir uh uh sir uh my question is even though for Q4 the GRM is around 13 the situation overall 29:59 29 minutes, 59 seconds sir your voice is sorry to interrupt sir sir your voice is too low yeah am I audible 30:07 30 minutes, 7 seconds yeah now audible sir please go ahead sir thank you yeah uh sir my question is uh till February the overall geopolitical 30:14 30 minutes, 14 seconds situation was normal and in the month of March the actual event started reacting to the overall 30:21 30 minutes, 21 seconds elevated crude oil prices and even higher cracks. Uh so even though the JRM have improved, is it reasonable to 30:29 30 minutes, 29 seconds estimate? Can you provide any quantitative figure how cracks have increased in the month of March as compared to January and February? 30:38 30 minutes, 38 seconds For CPC? 30:40 30 minutes, 40 seconds Yes. Uh so what I can tell you is the quarter 4 GRM I gave as an indication where which includes January to March you know 30:48 30 minutes, 48 seconds and quarter 4 GRM were little better than quarter 3. Quarter 3 GRM were little better than quarter 2. So that is 30:57 30 minutes, 57 seconds how the you know and quarter 2 quarter 2 quarter 3 all these uh you know all these last three quarter were much above quarter 1. That's the sequence the whole 31:05 31 minutes, 5 seconds year has gone. But if you talk about any particular part of March or any particular part of April, the volatility is very high on a daily basis. 31:17 31 minutes, 17 seconds Okay. 31:18 31 minutes, 18 seconds But still in these months, the cracks are reasonable enough and closer to our long-term averages. So we that is how we 31:26 31 minutes, 26 seconds are striving to maximize our throughput even in this situation. 31:32 31 minutes, 32 seconds Okay. Okay. Fine sir. Okay. That answers my question. Thanks. 31:40 31 minutes, 40 seconds The next question is from the line of Dal Pop from Choice International Limited. Please go ahead. 31:49 31 minutes, 49 seconds Yeah, congratulations on good sets of number and uh thank you for the apository for asking question. Uh first question I had was uh on the uh so HPCL 31:58 31 minutes, 58 seconds underwent the residual updation facility recently and CPCR had done it way back in 2018. So is it possible for the 32:06 32 minutes, 6 seconds management to comment on how the RUF or HP how the CPCL RUF was different in terms of bottom destruction 32:15 32 minutes, 15 seconds vacuum treatment of vacuum gas or vacuum gas as compared to what HPCL will do now and uh the second question I have 32:23 32 minutes, 23 seconds particularly is that from a perspective of the flexibility between the uh uh diesel and jet fuel. So how comfortable 32:31 32 minutes, 31 seconds is CPCL moving to jet fuel or the proportion of jet fuel being higher in the current quarter as compared to diesel? 32:38 32 minutes, 38 seconds So provided European crats are going to be much more higher influencing Asian crisis. I'll stop here for the answers. 32:49 32 minutes, 49 seconds Uh on the first part of your question, see each refinery the unit name may look similar but the 32:58 32 minutes, 58 seconds configurations are all together different. So my bottom upgradation project and HPCL's 33:05 33 minutes, 5 seconds bottom upgradation project may not be same in all parameters. But I can tell you what I achieved what I achieved through my upgradation project. You know 33:15 33 minutes, 15 seconds like the last part the DCU delayed coer unit till now I I was operating at a capacity of 70 odd%. This time I'm close 33:22 33 minutes, 22 seconds to 100%. Again because this time I felt some of the blends can come from other units I can process in DCU. I can further improve the yields and that is 33:31 33 minutes, 31 seconds how you find my yield to be 80%. You know if you see last 3 four years of CPCL the yield you know has gone up 33:38 33 minutes, 38 seconds significantly up not marginally up and certainly these kind of projects you know play a large role you know over a 33:46 33 minutes, 46 seconds period of time on the other part diesel versus jet fuel see uh you know based on the license I 33:55 33 minutes, 55 seconds have based on the configuration I have I have certain percentage of product that is fixed my swing capabilities are minor 34:04 34 minutes, 4 seconds from convert one to other only thing this kind of debottlenecking blend transfer rrooting mixing these can can 34:13 34 minutes, 13 seconds be done but there's a limitation but CPCL because operates three crude units it is a lot of flexibility 34:21 34 minutes, 21 seconds to that way and certainly our operation plan we run our you know uh RBO plan 34:28 34 minutes, 28 seconds twice a month so thrice a month we look at what is the broad trend what modification can happen, how can 34:34 34 minutes, 34 seconds you optimize profit, you know, and that is how we, you know, tweak our plans. 34:39 34 minutes, 39 seconds Even if we have a long-term plan, we have annual plan, we have a monthly plan, we tweak to the extent possible depending on all all these parameter. 34:50 34 minutes, 50 seconds Okay, that is helpful. So, so just uh just to follow up on this uh so as you said, of course, I've been following the CPCL and it has increased from 75% 34:59 34 minutes, 59 seconds onwards to almost now 80%. So over the next three years how can we expect a discate yield to be 35:06 35 minutes, 6 seconds going forward let's say by 2029 in 27 28 29 will this will we be able to see similar improvement or will be some 35:15 35 minutes, 15 seconds slower improvement or how can we see that so I I'll reply this like this see uh there are some gradual small improvement 35:24 35 minutes, 24 seconds which happens through operational measures based on experience blend transfer and all that that's a continuous process that small increment 35:31 35 minutes, 31 seconds AL impact will continue but lot of some more things happen through schemes capex low capex schemes. Our people work on 35:40 35 minutes, 40 seconds both sides. Parallelly also we are working on so many capex small capex projects which can give a significant impact. Parallelly also we are running 35:48 35 minutes, 48 seconds on our encon schemes and all which at times which at all times gives impact on loss but at times it also gives us 35:57 35 minutes, 57 seconds benefit in terms of yield. The third point is crude mix. We are forgetting crude mix is a big factor in impro 36:04 36 minutes, 4 seconds improving yield and that is where you know we go on exploring more and more crude. We look at blends what kind of 36:13 36 minutes, 13 seconds blends can be done and at times this also gives a lot of additional benefits without significant corresponding increase in cost. 36:25 36 minutes, 25 seconds Okay. Agreed. Okay. All all these efforts. Thank you. 36:35 36 minutes, 35 seconds The next question is from the line of Kanan Meta from Bodha BNP Paribas Mutual Fund. Please go ahead. 36:46 36 minutes, 46 seconds Thank you sir for the opportunity. 36:49 36 minutes, 49 seconds I have a follow-up question on the statement that you made that the current net GRM are based closer to the longerterm average both in case of diesel and ATF. 37:00 37 minutes So is this somewhere around $15 per barrel? Is that the average that we are looking at because typically over 7 to 37:07 37 minutes, 7 seconds 10 years the diesel cracks have average around $15 per barrel. 37:13 37 minutes, 13 seconds Uh it seems uh you and me are reading two different books. 37:20 37 minutes, 20 seconds when I look at average so when I look at uh know five year average in MS I also 37:26 37 minutes, 26 seconds find a negative crack so you know though we are not talking on MS so if I stick to diesel I found 11 to 13 is the 37:34 37 minutes, 34 seconds long-term average $30 per barrel 11 to 1311 to1313 37:44 37 minutes, 44 seconds understood sir second question was about the we had seen a situation something 37:51 37 minutes, 51 seconds similar during the Russian invasion at which point of time I think the within the OMC's and the there was a mechanism 37:58 37 minutes, 58 seconds adopted where government announced the export duty and there was a commercial discussion between the OMC's and the 38:05 38 minutes, 5 seconds independent refiners and the prices domestic purchase price for the OMC was set adjusting for the export duty so the 38:14 38 minutes, 14 seconds even the for the domestic purchases OMC enjoyed the discount. Is the same mechanism being implemented even under 38:21 38 minutes, 21 seconds this crisis or the mechanism is something different? 38:26 38 minutes, 26 seconds Uh what I will tell is RTP uh is a very transparent pricing mechanism which is available you know at a industry level 38:36 38 minutes, 36 seconds uh and is available to everyone you know. So I think it will not be appropriate for me to deliberate on uh 38:43 38 minutes, 43 seconds RTP pricing but as I talk today even those gross margins you know the other 38:51 38 minutes, 51 seconds impacts are changing drastically day-to-day only thing I can tell you is what is what I'm able to see over a 15 38:58 38 minutes, 58 seconds year 15 day period or a month period you know when I look for a month average kind of a period I feel I'll be able to 39:05 39 minutes, 5 seconds sustain the long-term averages Sure sir. One more question was follow up on 39:12 39 minutes, 12 seconds the crude basket. We said that we have a 55 to 60% coming through the long-term agreements. Could you also sort of 39:20 39 minutes, 20 seconds highlight how much of this long-term agreements are with the Middle East partners and what portion of those long-term agreements has been impacted 39:28 39 minutes, 28 seconds by these closure of the state of Humus for more than 50 days now? 39:35 39 minutes, 35 seconds So uh I will tell you maybe you can uh consider almost all are middleist almost all of the long-term agreements are 39:44 39 minutes, 44 seconds middleist even within these difficult uh situations cargos are still flowing to us. 39:52 39 minutes, 52 seconds What has impacted is uh maybe 30 40% would have impacted on a 40:00 40 minutes very short uh period but uh all have assured us that uh depending on the situation they will make up all the caros 40:09 40 minutes, 9 seconds understood and one probably one more question about the Russian caros you have said that it's around 25 to 30% in 40:16 40 minutes, 16 seconds the mix in the previous quarter we had some see seen some sort of level of discounts of around $3 or so. At this 40:24 40 minutes, 24 seconds point of time when we compare with the brand is it coming at a discount or is it coming at a premium? 40:33 40 minutes, 33 seconds Uh see again as you see uh we evaluate crude not based on where from it is coming what is the premium we try to 40:41 40 minutes, 41 seconds evaluate what is my lended cost what is my lended cost LSS what is the combination I want and based on that 40:49 40 minutes, 49 seconds even if I am procuring Russian crude I am comparing the lended cost or whenever you know because it is part of a spot so 40:58 40 minutes, 58 seconds when I take a Russian cargo I compare with other available spot cargos so I take based on the you know least lendered cost basis. 41:09 41 minutes, 9 seconds Right sir just one last question in terms of you have spoken about the 1 1600 cr group two and group three lobs 41:17 41 minutes, 17 seconds project. Could you sort of highlight some economics details in terms of what would be the sort of the yield the improvement that we expect out of it? 41:26 41 minutes, 26 seconds What kind of margin it can make? 41:29 41 minutes, 29 seconds Uhhuh. So I I'll tell you that see first uh it is a IR based project. We expect a good IR out of this. So this is not a 41:37 41 minutes, 37 seconds compliance based project. This is a economics based project that we are doing. The products will be group group two and group three LOBS 41:46 41 minutes, 46 seconds you know which will go to loops formation because you will find the loop manufacturer you know a significant 41:53 41 minutes, 53 seconds portion has moved from lobs 1 one grade feat to second and third for value added product. So lot of uh lobs 2 three will 42:02 42 minutes, 2 seconds give me realization third is maybe a small part of my HSD will also get converted into lobs. So basically it's a 42:11 42 minutes, 11 seconds value added product scheme where I'll be uh moving uh from lower value addition a lower realization product to higher relation product. 42:25 42 minutes, 25 seconds Sure sir. Thank you. 42:32 42 minutes, 32 seconds Thank you. The next question is from the line of Nav Jimundia from Envil Web. 42:38 42 minutes, 38 seconds Please go ahead. Yes sir thanks for the opportunities. I have two questions. So sir first is on um uh the low cost 42:45 42 minutes, 45 seconds debottlenecking which you just mentioned in your one of the remarks. So if you can just throw some more light on this like how much we are contemplating in 42:54 42 minutes, 54 seconds terms of this low cost debuting of our existing refinery and if you can give some sense in terms of what should be 43:02 43 minutes, 2 seconds the capex for this low cost debuting which we are currently undertaking. 43:08 43 minutes, 8 seconds Right. So I I will repeat what I said about capex. I said there are two new projects with me. One is lovs 2 and3 43:15 43 minutes, 15 seconds which is 600 cr. 400 cr is on my retail outlet. CPCL has ventured into retail outlet. 300 numbers retail outlet and 43:24 43 minutes, 24 seconds both these are new product. Those are economical uh projects. Both will give me first on expanding my margin my value 43:31 43 minutes, 31 seconds chain from only refinary to refinary plus marketing. And the lobs will give me value added product. Besides this, I said about another 500 crores my normal 43:40 43 minutes, 40 seconds maintenance capex and part of this maintenance capex is always used by our team to look into the opportunities of 43:48 43 minutes, 48 seconds small low value capex which can either result into efficiency in terms of energy and reducing my fuel loss or 43:57 43 minutes, 57 seconds value added product or you know some mix uh and other things where uh my overall uh bottom line improved. 44:08 44 minutes, 8 seconds And that happens on a day-to-day basis, regular basis. Uh uh which will continue. 44:14 44 minutes, 14 seconds Correct. So I understand that fact uh about the expansion and the newer products what you mentioned. I was more 44:21 44 minutes, 21 seconds talking about the debottling part like uh currently no uh so I I hope you are referring to 44:28 44 minutes, 28 seconds some debottling that I told. So but that there I have said that capex is not frozen. We are doing a study because what I said is my capacity is 10.5. Yes. 44:40 44 minutes, 40 seconds If you go back 3 four years I was not able to achieve 10.5. For the last 3 4 years I'm consistently exceeding 3.5 uh 44:47 44 minutes, 47 seconds 10.5 and achieving 11.6 11.7 even with or without a shutdown. So I felt there 44:54 44 minutes, 54 seconds is this sustainable capacity additional capacity. But if you want to sustain and realize high value you need commensate secondary with primary. Correct. 45:04 45 minutes, 4 seconds That comment state secondary we are doing a study. The study is not yet complete but in the coming year 26 27 we 45:12 45 minutes, 12 seconds hope that ongoing study will get completed and if we find out some low cost capex today that is not part of our 45:20 45 minutes, 20 seconds plan that will be in addition to whatever I have told. 45:24 45 minutes, 24 seconds Correct. Perfect. Got it. The second question is on the value added products like three four value added products. 45:30 45 minutes, 30 seconds one is and paraffhene, second is pharmarmacrin. 45:34 45 minutes, 34 seconds Uh then NAFTA also fetches currently now some premiums in the international market when we export that and fourth 45:42 45 minutes, 42 seconds one is MTO. So if you can just help us in terms of how much this products have achieved volumes in FI26 and uh let's 45:51 45 minutes, 51 seconds say out of the GRM what we have achieved in FI26 how much would be the contribution from these four products put together 46:00 46 minutes uh at this point I may not have detailed break up for these four product but I'll tell you very differently the same question that you're asking on a directional level 46:09 46 minutes, 9 seconds see 90% of my product uh is sold to Indian Well you know uh 90 92% 78% you 46:16 46 minutes, 16 seconds know constitute these kind of main products and this 78% till now is giving me 15 15% of my margin 46:24 46 minutes, 24 seconds and if you take one product like you know say MTO you know it has more than doubled in the last financial year that we were talking and if you talk about 46:32 46 minutes, 32 seconds hexane I have doubled my capacity so again in the coming year I may ramp ramp up this production similarly I told two 46:40 46 minutes, 40 seconds more products they discussing so These are small small niche products but if you take them as a group there is uh some good potential that we can increase margin. 46:49 46 minutes, 49 seconds Correct. So so just a followup like you mentioned that hexen we have doubled our capacity. So if you can help us how much 46:57 46 minutes, 57 seconds it was and how much currently we have in terms of 30 now the uh the capacity is 6 ft. 47:04 47 minutes, 4 seconds Correct. And second followup is on the expansion or the newer project of lobs. 47:11 47 minutes, 11 seconds So uh what would be the capacity enhancement or uh the capacities which we would be uh looking at with this newer project of group 23 L allobians. 47:24 47 minutes, 24 seconds So see today what is happening is uh as you would be knowing see PCL is the only refinery which has liquid fuel which has wax and which has loops potential. 47:37 47 minutes, 37 seconds There's the only refiner in India which has all three potential. But today part of our news potential we only are doing grade one. Today we don't have grade two 47:46 47 minutes, 46 seconds grade three. All the people who are dealing here in India most of them import. I don't have this capacity. So 47:53 47 minutes, 53 seconds now I am moving this this my new unit will take me to a 250,000 250 KTPA in 48:00 48 minutes group two G3 capacity and that will be a fresh addition and that will replace a lot of import will give me value addition. 48:11 48 minutes, 11 seconds Got it. And sir lastly your thoughts on an paraffin. So uh how is this product in terms of our overall refinery mix? 48:20 48 minutes, 20 seconds how much we were in terms of the production of an paraffhene let's say 3 four years back and where are we currently in terms of uh 48:30 48 minutes, 30 seconds what I will what I will suggest is on this emparin you know uh we can take this question offline because I'm not finding this to 48:38 48 minutes, 38 seconds be very very significant but then if you want a you know directional answer I talked about two products pentain and textile grid mto 48:46 48 minutes, 46 seconds so these are again something on that direction so idea is or whatever we find find in our periphery where because of our 48:55 48 minutes, 55 seconds technical skill the margin can be increased you know and plus we operate three unit so our flexibility is more so we are we have taken advantage in the 49:03 49 minutes, 3 seconds past going forward also our technical team is competent and they look out for these opportunities perfect sir thank you so much and wish 49:12 49 minutes, 12 seconds you all the best thank you thank you the next Question is from 49:20 49 minutes, 20 seconds Akash Meta from Canara HSBC live. Please go ahead. 49:28 49 minutes, 28 seconds Uh hi, thanks for having the call. So my first question is uh is in regards to the u you me that you're purchasing the 49:36 49 minutes, 36 seconds crude on OSP basis. So can you just help us understand the long-term contracts? 49:42 49 minutes, 42 seconds How long are these long-term contracts and uh uh basically uh what's the difference? I mean if you were to kind 49:49 49 minutes, 49 seconds of purchase from sports versus a long-term contract is is it the same or how how much advantage we have? That's my first question. 49:58 49 minutes, 58 seconds Yeah. So uh I I'll tell you see these contracts are one-year contracts before end of every year the terms are 50:07 50 minutes, 7 seconds renewed almost on similar basis and similar terms. And what is the difference between long-term you know term contract or spot is in case of a 50:16 50 minutes, 16 seconds term contract the supplier binds himself except unseen force major cases or otherwise he 50:26 50 minutes, 26 seconds commits us volumes of the specific grade that is entered into us at OSP. 50:33 50 minutes, 33 seconds So the price basis is agreed, the volumes are agreed and you know some of the flexibilities for both supplier and 50:41 50 minutes, 41 seconds the consumer are agreed. In case of a spot I give the requirement to the market for one parcel, for two parcel 50:50 50 minutes, 50 seconds whatever I want and from parcel to parcel there those changes my specification as well as the pricing term. 51:02 51 minutes, 2 seconds Uh sure. So that's that's helpful and uh secondly I uh I mean you have mentioned the crude breakdown in terms of sourcing 51:11 51 minutes, 11 seconds historically or in a normalized situation but can you just help us understand how things are going into the 51:17 51 minutes, 17 seconds April month uh if uh in terms of the region wise countrywide sourcing I think there also I I replied to one of 51:25 51 minutes, 25 seconds the queries where I said specifically if you talk about middle 30 to 40% if you look for a very short period is is is a 51:34 51 minutes, 34 seconds disturbance that has happened. But all the suppliers have assured us that uh they are committed by the annual commitments and uh you know um they they are committed to supply those barrels. 51:45 51 minutes, 45 seconds Uh but that intermittent uh you know short period uh gaps we had no difficulty in filling up from spot. 51:54 51 minutes, 54 seconds So the spot if we were to just look at you are getting I mean in general the purchases are coming majorly from Russia 52:01 52 minutes, 1 second and Africa or any other region because it's help us understand mostly there but uh in between uh few 52:10 52 minutes, 10 seconds cargos are otherwise also available but again what will come to us depends on what is the delivered price that has 52:18 52 minutes, 18 seconds come to me. So suppose 10 people might have quoted but I'll be taking you know the lowest cost on delivered basis. So I'll be knowing what I have taken. 52:30 52 minutes, 30 seconds Uh sure sir that that helps. Yeah check from myself. Thank you. 52:37 52 minutes, 37 seconds Thank you. A reminder to all participants please restrict yourself to two questions. 52:44 52 minutes, 44 seconds The next question is from the line of Nalinia from NVS brokerage. Please go ahead. 52:52 52 minutes, 52 seconds At the outset sir, let me congratulate the entire team of CPCL for I I would say probably it is the lifetime best performance from CPCL if I am not wrong. 53:04 53 minutes, 4 seconds So that is uh my first you know I mean congratulations to the team. 53:09 53 minutes, 9 seconds Sir my question is that uh all the other technical questions have been answered. 53:15 53 minutes, 15 seconds What I want to say and add is that your top line you know which is now you know at a uh significantly high levels you 53:23 53 minutes, 23 seconds know uh something like 50 70,000 crores 90,000 crores your share capital has remains at a very small level 148 53:31 53 minutes, 31 seconds crores. are we not you know wanting to reflect correctly our you know share capital by uh capitalizing the bonus 53:39 53 minutes, 39 seconds shares and giving out to these investors. So that is I think one question which remains in my mind when we have a significant reserves of almost 11,000 crores. 53:50 53 minutes, 50 seconds So first of all I must uh thank you you know for complimenting the team um on 53:57 53 minutes, 57 seconds the performance I will tell uh in terms of number certainly this is one of the best performance that we have done but 54:03 54 minutes, 3 seconds I'll still rate this as the best because if you see on all parameter we are exceeding year by year so what 54:12 54 minutes, 12 seconds you know what that gives me a confidence that given a good market given a conducive atmosphere we can repeat or 54:18 54 minutes, 18 seconds exceed these kind performances you know everything else falls in place. 54:25 54 minutes, 25 seconds Yeah. Now you know now with respect to reward uh see that is another aspect we are very keen and we have been we have been 54:34 54 minutes, 34 seconds demonstrating all these over the past 2 three years. 54:38 54 minutes, 38 seconds If you see 2023 24 one of the highest ever dividend of 55 rupees was given against 10 rupees. 54:45 54 minutes, 45 seconds Correct. Correct. Then even though the company was looking for capex there were good growth projects are there but we felt no reward to shareholder is also an 54:54 54 minutes, 54 seconds important part and if you see in the current year again for the first time interim dividend was given and now if you include dividend the dividend is 62 55:02 55 minutes, 2 seconds the overall dividend 62 one of the again one of the highest dividend paid by this shareholders absolutely so as far as we are concerned the 55:11 55 minutes, 11 seconds shareholder is in our focus correct but you would also appre appreciate some of the decisions are taken at the right 55:18 55 minutes, 18 seconds time. So we feel such a at a right appropriate time even the bonus issue will also be considered by the board and a right decision will be taken. 55:27 55 minutes, 27 seconds Thank you very much sir. Thank you and once again congratulations for outstanding performance and the best wishes for the current year. Thank you. 55:40 55 minutes, 40 seconds Thank you. The next question is from the line of Omang Aditya, an individual investor. Please go ahead. 55:48 55 minutes, 48 seconds Sir, uh am I audible? Yes. Yes, I order. 55:53 55 minutes, 53 seconds Uh sir, uh I have one question on my part. Uh sir, in March uh quarter, uh crude was around $110 to $115. 56:05 56 minutes, 5 seconds So our blended margin GRM came around 9.2. $2. So I I want to ask if they uh 56:15 56 minutes, 15 seconds can you just quantify any profit foregone uh in terms of uh 56:22 56 minutes, 22 seconds selling of oil to IOC in absolute numbers. 56:29 56 minutes, 29 seconds Okay. So two things I will tell first on crude price and GRM actually uh and 56:36 56 minutes, 36 seconds literally scientifically also there is no one to one relationship between crude price and GRM. Okay. 56:42 56 minutes, 42 seconds See it is a crack the difference between crude and product which is called the crack you know that determines GRM based on my efficiency. 56:51 56 minutes, 51 seconds So the crack gross crack you know defined by my soil and loss and my oper operation capabilities decides what kind 56:58 56 minutes, 58 seconds of GRM I will have. So at times even a low crude might have a low GRM period and a high crude might have a high GRM 57:05 57 minutes, 5 seconds period and vice versa. You know there is no one to correlation between the two. 57:10 57 minutes, 10 seconds On the second part uh can you repeat the second part? Um my second part is uh can you just quantify 57:20 57 minutes, 20 seconds a absolute number uh which uh profit foregone by CPCL by selling oil to IOC? 57:29 57 minutes, 29 seconds Yeah. Yeah. So what I told is though I s sell about 992% oil to IOC but I have 57:37 57 minutes, 37 seconds entered into a long-term agreement with them. Okay. 57:40 57 minutes, 40 seconds And the long-term terms are RTP refinary transfer price. So this is the price where everyone sells to an OMC. 57:49 57 minutes, 49 seconds Okay. 57:50 57 minutes, 50 seconds So basically what I sell is at where at at the price at which industry sells to marketing companies. 57:57 57 minutes, 57 seconds So uh I will I will not assign anything as profit forgone you know because I'm selling at market price which everyone else is selling. 58:07 58 minutes, 7 seconds Actually the purpose of asking the question was that uh no doubt it was a very good result. I know but uh the 58:15 58 minutes, 15 seconds purpose was uh because uh we can see clearly arms have fallen due to uh RTP 58:23 58 minutes, 23 seconds cap and all. So there would be an absolute impact. So I uh I would expect any rough number from your part. 58:35 58 minutes, 35 seconds No, I'll I'll not be able to allocate a rough number at this place because whatever you are saying is also maybe at 58:42 58 minutes, 42 seconds max a fortnite or maybe less than that which will not impact the results that we are discussing either the quarter or 58:49 58 minutes, 49 seconds the annual very significantly but yes you know and as far as I am concerned and when I look at my business when I'm 58:58 58 minutes, 58 seconds realizing something close to my long-term averages I will not you know put a lot of effort into day-to-day movement because I'm not a trader 59:06 59 minutes, 6 seconds you know my objective is not to take uh advantage or get bogged down by short-term uh uh you know few days 59:14 59 minutes, 14 seconds abnormal situation my idea is whether my business model is intact whether my margins are on the you know in the path of long-term averages whether I'm able 59:22 59 minutes, 22 seconds to create efficiencies within my system from what I have done last if I'm on the uh growth trajectory I'm able to bring 59:30 59 minutes, 30 seconds in new projects I'm able to improve my material balance and I'm able to I'm on the margin front. I'm on on my long-term 59:37 59 minutes, 37 seconds average. That is where I'll put my focus and my efforts. 59:47 59 minutes, 47 seconds Thank you. The next question is from the line of NM modi an individual investor. 59:55 59 minutes, 55 seconds Please go ahead. 59:57 59 minutes, 57 seconds Yes sir. Good afternoon. Thank you for g giving me the opportunity sir. My first question is regarding other expenses. 1:00:05 1 hour, 5 seconds During this quarter the other expenses is 634 K whereas last year it was 344 K. 1:00:11 1 hour, 11 seconds So there is a steep increase at the same time whole of in whole year last year it 1:00:17 1 hour, 17 seconds was 1465 K and this year it is 21 K. So what? 1:00:23 1 hour, 23 seconds Yes. Yes Mr. Modi you are right. uh as we talk because the rupee movement uh is significant during the quarter as well 1:00:31 1 hour, 31 seconds as year that is what is accounting significantly. We give a rough number of about 200 crores uh towards the quarter and about close 1:00:40 1 hour, 40 seconds to about 350 400 crores toward the annual so that constitutes a significant part of this and this is booked in other expenses. 1:00:47 1 hour, 47 seconds Oh that is included into other expenses. Yes. Yes. 1:00:51 1 hour, 51 seconds One note could have been helpful in that regard. It would have given the no one note below the accounts. 1:00:58 1 hour, 58 seconds Yeah. No, no, we normally do that but as you know there are classification of percentage of the item and based on that 1:01:05 1 hour, 1 minute, 5 seconds it has not been but your point is well taken. 1:01:07 1 hour, 1 minute, 7 seconds Yes sir. Other thing s this GM you have pointed out during conversation 13.75 during this quarter 1:01:15 1 hour, 1 minute, 15 seconds but but sir not to the accounts you have mentioned 9.28 two. It is not clear to me. 1:01:21 1 hour, 1 minute, 21 seconds Uh what you are seeing in annual accounts is full year. 1:01:24 1 hour, 1 minute, 24 seconds No no sir that is written in the last quarter only. In the accounts it is written at $9.28 US is in the last quarter. 1:01:32 1 hour, 1 minute, 32 seconds No full year sir. 1:01:33 1 hour, 1 minute, 33 seconds Uh it is full year April to March. You see the corresponding figure will also be full year. 1:01:40 1 hour, 1 minute, 40 seconds Okay. 1:01:44 1 hour, 1 minute, 44 seconds So far I remember sir it is given uh let me read out what I have written. This is note number seven. Yes sir. 1:01:51 1 hour, 1 minute, 51 seconds Average gross refining margin for the period April to March 26 is USD dollar 9.28 per barrel within bracket April March 2025 US 4.22 per barrel. 1:02:03 1 hour, 2 minutes, 3 seconds Okay. Clear sir. That is for whole of the year. Right. Right. Right. Clear. 1:02:07 1 hour, 2 minutes, 7 seconds And this 13.75 stand for the last quarter of the year. Yes, please. 1:02:17 1 hour, 2 minutes, 17 seconds Yes, please. Thank you. 1:02:20 1 hour, 2 minutes, 20 seconds The next question is from the line of yog. Uh we'll be taking uh one or two more. 1:02:28 1 hour, 2 minutes, 28 seconds Okay sir. Okay. From Yogesh Patel from Dollar Capital. Please go ahead. 1:02:36 1 hour, 2 minutes, 36 seconds Thanks for taking my question again. Uh let me touch again this earlier question and need a small clarification 1:02:45 1 hour, 2 minutes, 45 seconds to the net GRM or cracks on a diesel you guided that $11 per barrel to the $13 1:02:51 1 hour, 2 minutes, 51 seconds per barrel range. So this average net diesel cracks of for the last one month 1:02:59 1 hour, 2 minutes, 59 seconds since the export duties are imposed from 26th March. Is this the correct understanding? 1:03:06 1 hour, 3 minutes, 6 seconds uh I do not uh evaluate or my management information system doesn't do it on a daily basis. I see over a period 1:03:13 1 hour, 3 minutes, 13 seconds normally I see over a period either a month or a fortnight and normally my period will be a full month 1 to 30th or a first fortnite 1:03:23 1 hour, 3 minutes, 23 seconds second fortnite on a day-to-day basis we don't monitor this. 1:03:28 1 hour, 3 minutes, 28 seconds So the month would be the appropriate to take last one month correct? Yes, that is that is how we plan our operation and 1:03:36 1 hour, 3 minutes, 36 seconds that is how we monitor the performance also and there we felt uh you know the long-term trend is intact. 1:03:43 1 hour, 3 minutes, 43 seconds So the understanding would be correct net GRM on a cracks or a diesel would be around $11 to $13 per barer for the last 1:03:51 1 hour, 3 minutes, 51 seconds one that is the appropriate here including the last quarter. 1:03:58 1 hour, 3 minutes, 58 seconds Yeah. So uh last question from my side sir. Previous participants asked that the Russian oil and the brand oil price 1:04:06 1 hour, 4 minutes, 6 seconds uh purchase difference. Let me reframe on the landed basis considering the best value product outcome from the crude 1:04:14 1 hour, 4 minutes, 14 seconds whether the Russian or the brand Russian crude is cheaper than brand or in line or premium to brand. 1:04:23 1 hour, 4 minutes, 23 seconds Okay. So I'll tell you like this. 1:04:25 1 hour, 4 minutes, 25 seconds Suppose I say I have purchased 20% Russian then this 20% Russian were cheaper than 1:04:34 1 hour, 4 minutes, 34 seconds other available crude for the grade that I asked for. Suppose I have purchased another 10 other cruds then those were 1:04:42 1 hour, 4 minutes, 42 seconds cheaper compared to any other crude during that time during uh based on the configuration I based on the 1:04:49 1 hour, 4 minutes, 49 seconds specification I wanted. So whatever Russian I have procured that was on delivered basis was cheaper. If some 1:04:57 1 hour, 4 minutes, 57 seconds Russian I have not procured that means it was not on delivered basis cheaper or during that time someone something else was cheaper. 1:05:08 1 hour, 5 minutes, 8 seconds Thank you ladies and gentlemen. We take this as a last question and conclude the question and answer session. I now hand 1:05:16 1 hour, 5 minutes, 16 seconds the conference over to the management for closing comment. 1:05:22 1 hour, 5 minutes, 22 seconds Uh yes I I thank you again um all of the participants. Uh CPCL is committed for 1:05:30 1 hour, 5 minutes, 30 seconds uh stellar operation performance. Uh we take each of the feedback pretty seriously. Uh for us the investor 1:05:40 1 hour, 5 minutes, 40 seconds conference uh is a system of two-way communication and we are committed to continue with our excellent performance 1:05:46 1 hour, 5 minutes, 46 seconds year after year. challenges. Whatever challenges come, we put our best foot forward and we see that how it can be 1:05:54 1 hour, 5 minutes, 54 seconds resolved within our capacity and constraint. And over the last few years, CPCL has demonstrated that irrespective 1:06:02 1 hour, 6 minutes, 2 seconds of situation we are in, we are able to navigate uh stronger and in a better manner and we hope we continue the same going forward. Thank you all once again. 1:06:16 1 hour, 6 minutes, 16 seconds On behalf of ARA Securities, that concludes this conference. Thank you for joining us. You may now disconnect your lines.