Hindustan Petroleum Corp Ltd — Q4 FY26

Hindustan Petroleum Corp Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=q64nvRnUGBA Published: 13 hours ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Hindustan Petrovian Corporation Limited Q4 FIR26 earnings 0:08 8 seconds call hosted by Antique Stock Broking Limited. As a reminder, all participant lines will be in the lesson only mode 0:16 16 seconds and there will be an opportunity for you to ask questions after the presentation concludes. 0:22 22 seconds Do you need assistance during this conference call? Please signal an operator by pressing star and zero on a 0:29 29 seconds stone phone. Please note this conference has been recorded. I now hand the conference over to Mr. Vartarajin SAM from Antique Stock Broking Limited. 0:41 41 seconds Thank you and over to you sir. 0:43 43 seconds Thank you Sali. A very good afternoon everyone. It's my pleasure to welcome all the participants on this call and 0:50 50 seconds the top management of SPCL this afternoon for their discussion on the fourth quarter results. 0:57 57 seconds From SPCL we have Mr. Vikash Kel chairman managing director Mr. Rajnish Narin director finance Mr. Sorin 1:04 1 minute, 4 seconds director refineries and Mr. Kod executively director corporate finance. 1:09 1 minute, 9 seconds I'll hand over the floor to Mr. Kasan for his comments. Thank you Jen. Good afternoon everyone. 1:16 1 minute, 16 seconds Uh uh pleasure speaking to you on this uh uh call. Um as you all know we uh 1:23 1 minute, 23 seconds declared our Q4 and the annual results uh just a short while ago and uh we thought this would be a right time to do 1:30 1 minute, 30 seconds a call uh early uh today itself. Uh uh we wanted to beat you before uh we are writing the first reports and asking 1:39 1 minute, 39 seconds questions. We wanted to give you data so that you can write the informed reports. 1:43 1 minute, 43 seconds Um I before we start the conversation I would say like in the past uh all the detailed results uh investor 1:52 1 minute, 52 seconds presentations are both reported to the stock exchanges are also on our website. 1:56 1 minute, 56 seconds uh so we are not going to make a formal presentation like in the past but uh I'll start off by talking uh for a few minutes about uh how we see the 2:05 2 minutes, 5 seconds situation about our numbers uh highlighting a few points and then remaining time we will use for an open question answer session. 2:13 2 minutes, 13 seconds So just to get started we all know that we learned times we uh live in uh the geopolitical uncertainty 2:20 2 minutes, 20 seconds um is all around us uh uh going on for a fairly long time. the crude prices uh 2:27 2 minutes, 27 seconds have gone high and more importantly they are very volatile sometimes shifting 8 to $10 in a day. Uh product availability 2:36 2 minutes, 36 seconds or crude raw material NPG availability has been challenging with the supply chain disruptions and uh forex we all 2:44 2 minutes, 44 seconds know has had uh challenges in terms of rupee depreciation. On top of it being in a business which uh supplies energy 2:53 2 minutes, 53 seconds to the millions of homes and then millions of vehicles we get very impacted by fears and perceptions. So in some geography someday people think 3:01 3 minutes, 1 second there is going to be shortage of fuel and then so many people turn up at the pumps etc. So that's been the life we have been living um in the last uh 70 3:11 3 minutes, 11 seconds odd days. Uh our focus as a management team has been in terms of few things. 3:17 3 minutes, 17 seconds first really ensuring that the supplies are met. Our teams have worked incredibly hard to make sure whether 3:24 3 minutes, 24 seconds it's LPG supplies um um liquid fuels uh all kind of supplies are met the retail stations are working the LPG is getting 3:32 3 minutes, 32 seconds home etc that has taken a lot of uh effort but we are very happy that uh we along with other companies in the sector 3:41 3 minutes, 41 seconds have maintained the supplies. Second u question which keeps on coming and perceptions which keep on getting oh crude is going to run out. I I can 3:49 3 minutes, 49 seconds assure you that uh uh we as a company and others also have fully secured the crude for a long period of time and we 3:57 3 minutes, 57 seconds are we don't see availability of a crude as an issue. Of course pricing we all know has been a challenge there. LPG uh 4:06 4 minutes, 6 seconds there's been a very nice pivot in the country on LPG from uh a situation where where we were very dependent on Persian 4:12 4 minutes, 12 seconds Gulp on imports uh and those import sources dried out rather uh quickly uh we've been able to increase uh domestic 4:21 4 minutes, 21 seconds production we've been able to increase alternate sourcing etc and uh as we speak we have a very good forward coverage on uh the supply availabilities 4:30 4 minutes, 30 seconds I can assure you those of you who are connect connected with NPG cylinders, your kitchens are not going to go dry. 4:36 4 minutes, 36 seconds You will get your cylinders in time. Of course, you'll have to wait for the 21day cycle uh which is the rule. Now, 4:43 4 minutes, 43 seconds this has all required a lot of hard work and um uh before I proceed further, uh it'll be remiss on my part to not thank 4:51 4 minutes, 51 seconds my teams in HPCL who have done incredible work uh over the last 70 days of this crisis. um it takes a lot of 5:00 5 minutes toll to supply those cylinder and keep those pumps working in these situations. 5:05 5 minutes, 5 seconds Also I would call out uh a very good coordination between all the oil companies. We have not let each other down and anybody needs product. We have 5:13 5 minutes, 13 seconds been helping each other and also there is a very accurate guidance and uh interactions with the ministry of petroleum and natural gas and other 5:20 5 minutes, 20 seconds government stakeholders to ensure that there is continuous supplies of the product in the country. 5:27 5 minutes, 27 seconds Um all people have worked very hard to solve this. Of course we hope normaly comes back uh very quickly and some of us get uh some welldeserved rest and some chance to sleep. 5:39 5 minutes, 39 seconds With that preude let me come to what you are waited waiting for in terms of our views on the results. uh I'm uh excited 5:45 5 minutes, 45 seconds to present the results after every uh quarter we have come and talked on this forum talk to all of you and many of you have otherwise reached out and we've 5:54 5 minutes, 54 seconds been very open in giving times uh time and also very open in sharing our views and also listening into your feedback and suggestions. 6:02 6 minutes, 2 seconds You'll recall by quarter 3 we had clocked 12,274 as standalone profit. This was up 206% 6:10 6 minutes, 10 seconds uh from last year. So you knew we were on a good trajectory for the year. Um we carried that strong momentum into 6:17 6 minutes, 17 seconds January and February also and locked in good numbers in both those uh months. In March the crisis hit obviously all kind 6:26 6 minutes, 26 seconds of volatility happened. Uh but uh and we had to take a lot of mitigation measures both in terms of the physical aspects of 6:34 6 minutes, 34 seconds the business but also the financial aspect uh um of the business. Uh all I can say is uh team HPCL was very swift 6:43 6 minutes, 43 seconds to react balancing actions with financial prudence. Now not all of those we will discuss on the call but I would 6:49 6 minutes, 49 seconds say every um inch of effort was done and and every ounce of energy was extracted to make sure we are balancing the 6:57 6 minutes, 57 seconds supplies with the uh also ma managing financial prudence. It's not just for supplies. We are not letting go of all 7:05 7 minutes, 5 seconds financial prudence there. You all know that our business has a lag effect. Um uh in March uh uh we pretty much 7:12 7 minutes, 12 seconds consumed the Fed price crude. Uh so this mitigated the impact for March and this 7:20 7 minutes, 20 seconds coupled with many other factors have helped us in balaging a strong performance and decent performance in 7:28 7 minutes, 28 seconds March. That coupled with the January February momentum resulted in strong quarter four numbers. Our revenue for 7:35 7 minutes, 35 seconds quarter 4 is 1 lakh 23,000 crores if I remember it correctly 4.5%. 7:41 7 minutes, 41 seconds Mar that was marginally because of the price increase in the uh some of the u segments uh industrial consumers and 7:50 7 minutes, 50 seconds also some volume uh increases. Uh the tax for the quarter uh is uh 4901 7:57 7 minutes, 57 seconds crores. It's up if I remember correctly 46 uh uh% or something of that number. I I don't remember it off hand but it's a 8:04 8 minutes, 4 seconds reasonably large number. So part which is exciting is when we look at the year as a whole our fat for the year 8:12 8 minutes, 12 seconds standalone is one 17,175 crores. This is 233% of the fat of last year. Um so 133%. 8:22 8 minutes, 22 seconds And the previous best ever HPCL has recorded was 14 650 654 or something. Uh so this is 17% higher than the previous 8:31 8 minutes, 31 seconds best HPCL has ever recorded. Um the consolidated pack was 18,47 kores. Uh 8:39 8 minutes, 39 seconds two of our refinary investments uh HME and MH MRP are contributing strongly especially in the fourth U quarter. Uh 8:47 8 minutes, 47 seconds we are excited about this performance all through the year. We have been talking to you very transparently about what we are doing and many things we are 8:54 8 minutes, 54 seconds trying to do into our business. Um I'll talk on that in a minute but let me give uh what these numbers lead to. Um I 9:02 9 minutes, 2 seconds think uh you would recall and many of you had questioned us on our debt equity for a period of time. We have been carrying high debt equity for a period 9:09 9 minutes, 9 seconds of time. At the end of what H1 of FI25 our debt equity was as high as 1.63 9:18 9 minutes, 18 seconds at the end of the financial year it had dropped to about 1.38 but with this strong performance this 9:24 9 minutes, 24 seconds year uh it has dropped to 8. This is well below the guidance we had given to UF at 1.1 and then towards 9:34 9 minutes, 34 seconds the middle of the year we have revised the guidance to close to um uh one. So we have uh managed to successfully 9:41 9 minutes, 41 seconds delever uh for the last year and I'll give you the breakups on how we think about it. What has driven this 9:48 9 minutes, 48 seconds performance? Uh I once again say it is team HPCL which has delivered this performance. uh and as the management team we are very proud of our team which 9:57 9 minutes, 57 seconds has uh delivered this uh incredible performance. Going into some of the factors and of course market momentum contribute to it and uh they were the 10:06 10 minutes, 6 seconds pricing regimes helped in the last quarter. Many of you were part of the times meet we have done including the one where honorable minister spoke about 10:13 10 minutes, 13 seconds it. Uh so that has contributed but there are six key factors in which the management drove which have also 10:22 10 minutes, 22 seconds contributed to the strong results. First our cost takeout program summary scheme. 10:27 10 minutes, 27 seconds Uh we all know that uh we've been talking about that in every analyst call. We had given a guidance of,000 cr which we later revised to 1500 crores. 10:37 10 minutes, 37 seconds The actual achievement for the year was uh 1691 uh crores of which 947 was one 10:44 10 minutes, 44 seconds time and 744 if I get the math correctly are recurring. The recurring one have 10:50 10 minutes, 50 seconds been baked in into our um um our budgets for this year and one-time ones 10:59 10 minutes, 59 seconds are interesting because it shows a sign of hunger that we are spotting those opportunities and grabbing those opportunities to improve the financial 11:07 11 minutes, 7 seconds performance. The second key aspect was actually translating the savings into PML. Um you know sometimes we do these 11:15 11 minutes, 15 seconds large program show savings but it does not show in the numbers. In our case, you can very well see in the numbers and I'll just give you two data points. Uh 11:23 11 minutes, 23 seconds first, if you look at OPEX as our as turnover in FI25, we were at 1.54%. 11:29 11 minutes, 29 seconds In FI26, we have come down to 1.45%. 11:33 11 minutes, 33 seconds It's a 09% which on the base on which we operate is a phenomenal number to get in a year. we might have got even better 11:43 11 minutes, 43 seconds except for that march a lot of extra costs had to be incurred for last minute movements etc. If I just talk in terms 11:49 11 minutes, 49 seconds of opex per uh empty um in FI25 the number was 1438 per metric ton and this 11:57 11 minutes, 57 seconds has dropped to 1344 that's the hard cash which has been conserved in the business you can multiply it with the 12:05 12 minutes, 5 seconds huge volume and that's where the savings and the uptake on the numbers had come in third we had a very tight and control 12:13 12 minutes, 13 seconds on the capex three four aspects uh first we obviously had rough and HR an impulse swing. So that capex we were funneling 12:21 12 minutes, 21 seconds all the capex which was uh required there but we had curtailed and phased out a lot of uh other capex and on the 12:29 12 minutes, 29 seconds curtailment also we went very slow on the capex in the first two to three quarters of the year it's only towards the end of the year uh we allowed some 12:37 12 minutes, 37 seconds of the what I would call as discretionary or less important uh capex this allowed us to carry uh or lower our 12:45 12 minutes, 45 seconds debt throughout the year and also be very prudent in where we spend the capex. Fourth, very tight management of 12:52 12 minutes, 52 seconds borrowings. March 31st, 2025, we were 63,323 crores on uh total debt. This is on 13:00 13 minutes standalone, not consolidated. March 31, 2026, we have dropped it down to 47,599. 13:06 13 minutes, 6 seconds That's an incredible drop. And there are two three reasons behind that entire thing. You later on we can talk about the short-term borrowings, long-term 13:14 13 minutes, 14 seconds borrowings which is there. But from my manage from my vantage point, very astute working capital management uh is 13:22 13 minutes, 22 seconds one of the reasons behind it. If I remember my numbers correctly, we probably shaved off around 8,500 crores from our working capital uh between the 13:31 13 minutes, 31 seconds last year end to this year end. Um that obviously lowers the borrowings. Uh and then uh as the crisis uh went out our 13:40 13 minutes, 40 seconds teams were very sharp in managing the situation including things like uh how much credit we had in the market, managing to get hold of that and 13:49 13 minutes, 49 seconds significantly reducing the outstanding credit etc. All the steps which are in management's control were exercised. The 13:56 13 minutes, 56 seconds fifth element was lower interest. Last year we carried an interest of three lakh 3,914 14:03 14 minutes, 3 seconds into our PML that dropped to 3,300 uh 3337 during the year literally around 14:10 14 minutes, 10 seconds 600 crores less. This is lower due to two counts. one lower debt burden. As we started performing better, 14:19 14 minutes, 19 seconds we started lowering the debt. And second, we took actions in specific refinancing of debt, lowering some of 14:26 14 minutes, 26 seconds our we managed to lower our forex exposure by maybe 250 300 million during that period. All of that helped in tightening the numbers towards the end. 14:37 14 minutes, 37 seconds Last but not the least, uh very strong uh um operational performance, refining best ever. which both our refiners put 14:44 14 minutes, 44 seconds together um produced more than 26 million tons highest ever 3% growth over last year and on marketing it was uh 51 14:53 14 minutes, 53 seconds something lost sales you can see it in the investor presentation again a 3.3% growth all I would say is uh during the 15:00 15 minutes year we we focused on growth on profitable segments we did not chase growth at all costs so our growth 15:08 15 minutes, 8 seconds numbers might be tag lower than what you would see for others but that was a very conscious call of not chasing volumes 15:14 15 minutes, 14 seconds but chasing valuable uh growth. These steps are a culmination of a lot of hard work by the entire team and uh over the 15:23 15 minutes, 23 seconds year I've seen the team push the boundaries on multiple dimensions. Once again I'll thank the team for all the 15:30 15 minutes, 30 seconds effort there. I'm sure there are some updates you would want to know before we throw it open for um the progress. Uh let me preempt some of the questions. 15:39 15 minutes, 39 seconds You would surely have a question around rough. Uh we had commissioned rough on 3rd of Jan. Uh it is progressing in 15:47 15 minutes, 47 seconds stabilization but at a slower rate than what we would have anticipated. We did have a uh uh I would say uh a situation 15:55 15 minutes, 55 seconds where there was a clogging of catalyst in the vessel. So we have to take a shutdown restarted etc. We are learning 16:01 16 minutes, 1 second how to handle that uh big uh beast. uh uh the unit is now as I speak back on stream and now it is ramping up fully. 16:10 16 minutes, 10 seconds We are expecting full ramp up in the next month or two and it's already giving smaller benefits to us but I 16:17 16 minutes, 17 seconds would expect um uh more incremental benefits to start coming in toward end of this quarter or any part of uh next 16:26 16 minutes, 26 seconds uh quarter. Uh so from a financial perspective it is not iterative in the numbers. Those of you who run Excel sheets very passionately, you can take 16:34 16 minutes, 34 seconds that block and say that is going to come over and above the numbers which we have uh delivered here. I would expect the numbers to kick in in quarter two on 16:42 16 minutes, 42 seconds HRL. You have you were aware that you were very close to commissioning or getting the project started with a event scheduled for dedication to the nation 16:50 16 minutes, 50 seconds on 21st uh April. Unfortunately, there was a fire on 20th. Happens in these businesses. Uh uh as we reported to the 16:59 16 minutes, 59 seconds stock exchanges uh there was a vacuum residue leak uh in the CDL unit which caused the localized fire. Thankfully, 17:08 17 minutes, 8 seconds it was brought under control very quickly and uh it was uh very localized. 17:14 17 minutes, 14 seconds Just for context, it impacted six heat exchanger bays uh in the refinery. And uh last time I was asking Chrisandi was 17:22 17 minutes, 22 seconds telling me that there are at least 6 to 800 such heat exchanges in the refinery itself. So it's a very small portion when you see on the map but obviously it 17:30 17 minutes, 30 seconds delayed the kickstart of the thing. The good thing is that it is getting back on Pete. Other units are in the commissioning cycle. Uh we actually have 17:39 17 minutes, 39 seconds produced and sold MPG in the trial runs of CDU. We've run at least one VTC of crude already and produced 17:46 17 minutes, 46 seconds intermediates. And hopefully in this month um we would start producing the um 17:54 17 minutes, 54 seconds diesel and MS and COV will also be back on stream. So we are hoping towards that and aiming towards achieving a COD on 18:02 18 minutes, 2 seconds the project um shortly. Initially the refinery would operate at around 60% uh capacity. We are expecting that run in 18:09 18 minutes, 9 seconds June if we have ordered crude truck accordingly and from quarter two we are expecting the refinary section to ramp 18:16 18 minutes, 16 seconds up uh fully and then slowly we will add pet and pet right now under control order we have to produce LPG rather than 18:25 18 minutes, 25 seconds uh propane downstream on char which was our third project uh we were able to complete n or the port 18:33 18 minutes, 33 seconds was able to complete 90 95% of the breakwater I think around 18 or 1850 50 m of break water has been completed. 18:40 18 minutes, 40 seconds About 100 is left. With this we expect the permission to run the uh SS at full capacity for 11 10 and a half to 11 18:48 18 minutes, 48 seconds months of the year barring the peak monsoon season. For running a peak monsoon season, we need to do the remaining 100 uh uh meters which now can 18:56 18 minutes, 56 seconds only happen early part of next year or any part of the post monsoon cycle. Uh but we are starting to bring in more 19:04 19 minutes, 4 seconds carbos of course right now. um everything is disrupted with the supply chain. Last update on the project side, the 2G ethanol which has been going for 19:12 19 minutes, 12 seconds some time, we have achieved mechanical completion by 31st March and we are hoping to start that project uh in the 19:19 19 minutes, 19 seconds next uh uh 2 to 3 months. Uh it'll be a big it's a technologically a big challenging project. So we don't expect 19:27 19 minutes, 27 seconds massive value from a financial perspective but nevertheless uh it'll be an important project to start. Just 19:35 19 minutes, 35 seconds closing out for uh on the forward-looking views. Uh quarter one we expected to be very tough. You all are aware of the situation. Uh the crews are 19:44 19 minutes, 44 seconds very expensive. Uh product prices are low and everything is quite volatile. Uh as of where we stand uh there would be 19:53 19 minutes, 53 seconds losses in the first quarter. Um enough of that has that has been said in the public domain. I think just yesterday at the seminar honorable minister of 20:02 20 minutes, 2 seconds petroleum and natural gas also talked about it and earlier in the week honorable prime minister also talked about the facts that uh oil companies 20:10 20 minutes, 10 seconds have been under stress given the current numbers. Um the numbers would depend on multiple factors and uh we are not going 20:18 20 minutes, 18 seconds to give any guidance on this because it's just too volatile to give a uh guidance. As a management team, we are very focused on the controllable aspects 20:26 20 minutes, 26 seconds uh mitigating the impact where we can maintain the supplies and also getting ourselves ready so that we bounce back very quickly when the business 20:33 20 minutes, 33 seconds environment uh turns around. What gives us confidence is our uh balance sheet uh 20:39 20 minutes, 39 seconds strength. Um we are uh a strong financial year improvement in the balance sheet gives us the headroom to 20:48 20 minutes, 48 seconds fight the current uh situation. Even as we manage that uh we are steadfast on our agenda for the next financial year. 20:56 20 minutes, 56 seconds We've been talking to you on these things but I'll very quickly in a minute or two just talk about it and then open it up for questions. Um Samriti 2.0 we 21:04 21 minutes, 4 seconds had said that we will give guidance in the first and call. We have withheld that guidance because in this volatile environment uh uh we find very 21:13 21 minutes, 13 seconds uncomfortable to pin down a number there. However, we are focused on this uh the first wave of synergy we had done 21:20 21 minutes, 20 seconds in house for this wave we have selected a consultant uh because we are now 21:27 21 minutes, 27 seconds getting on to uh hard to achiever se section but hopefully in the second on this call we'll be giving you a guidance 21:34 21 minutes, 34 seconds on what we are looking at but I want to leave everybody with a message that we are going to continue on the cost journey um and once the whole turmoil 21:42 21 minutes, 42 seconds settles down we'll get back onto the cost reduction curves And second on digital front we are making considerable 21:49 21 minutes, 49 seconds progress driving towards efficiencies capturing in the efficiencies and ease of work. Lot of parallel initiatives are going on and uh you would see leap 21:58 21 minutes, 58 seconds frogging of uh SPCL on this front. Uh I would encourage you to start visiting some of our refurbished retail outlets 22:06 22 minutes, 6 seconds and you'll see that slowly we are starting to make a difference on the refinary sides. uh uh HRL on getting on 22:14 22 minutes, 14 seconds board getting it stabilized is one of our topmost uh priority and then getting practic rolled on and rough we need to start getting in the benefits and we are 22:22 22 minutes, 22 seconds confident uh that going having gone through the learning curve we will get to the benefits soon. The next area we 22:29 22 minutes, 29 seconds want to talk about is uh trading or buying of products and selling of products. Uh that has been an increased focus for us over the last few quarters. 22:37 22 minutes, 37 seconds Uh we have diversified our crude buying. 22:40 22 minutes, 40 seconds We have brought in flexibility. We have brought in a lot of agility. Many of that 900 cr savings actually came in from some of these smart moves on 22:48 22 minutes, 48 seconds trading. Uh so we are gearing up and also gearing up a bit towards product trading because there will be times when 22:53 22 minutes, 53 seconds we have surplus uh products. Um retail we are already on the part of strengthening our brand. Uh we had 23:02 23 minutes, 2 seconds launched Abu last year. Uh it did not give us as much of throughput increase but it gave us a lot of learning. Having learned from that we have launched an 23:10 23 minutes, 10 seconds Abua 2.0 where we are now learning from what uh we could not achieve last year we are aiming to achieve that uh this 23:18 23 minutes, 18 seconds year um and in line with our capital cycle coming to an end. We are increasing our focus on renewables and gas and making sure both the investments 23:27 23 minutes, 27 seconds we are made are paying for our themselves and also thinking of the next wave of uh investments. 23:35 23 minutes, 35 seconds Also last point coming to close on this uh capital cycle we are starting to think of our next five year agenda. 23:45 23 minutes, 45 seconds Just to conclude over the last year we have started aggressively on our transformation journey. We have taken many initiatives. Some have succeeded 23:53 23 minutes, 53 seconds some have failed but we have learned in this. We have demonstrated our capabilities um to all hard news critics 24:02 24 minutes, 2 seconds like you and the external world but more importantly to ourselves because moment we know of our capabilities we can uh 24:09 24 minutes, 9 seconds win further. The team HPCL has a hunger and desire to win and we will hope to continue this strong uh performance. We 24:18 24 minutes, 18 seconds are on a strong trajectory and confident on delivering to our shareholders even despite all the crisis uh with us. Thank 24:27 24 minutes, 27 seconds you for your interest uh in us. Uh before I open it to questions, I also want to take this opportunity to thank 24:34 24 minutes, 34 seconds uh my fellow director. Um many of you have heard his voice as some of you might know his superanuating after a 24:42 24 minutes, 42 seconds long tenure in HBCL including many years at the helm of board of HBCL. Uh many of you who have followed HBCL for a long time. Uh remember his 40,000 crit slide. 24:55 24 minutes, 55 seconds Well, I was joking with him earlier in the day that uh we have reached 34381 as consolidated AITA which is a fitting tribute to his contribution uh to HBCL. 25:06 25 minutes, 6 seconds Um with that let me thank everybody for their participation and we will throw it open for uh questions. 25:15 25 minutes, 15 seconds Thank you very much. We will now begin with the question and answer session. 25:20 25 minutes, 20 seconds Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove 25:28 25 minutes, 28 seconds yourself from the question queue you may press star and two. Participants you are requested to use answer while asking a 25:36 25 minutes, 36 seconds question. Ladies and gentlemen, we will wait for the moment while the question ends. 25:50 25 minutes, 50 seconds We have the first question from the line of sin from IC securities. Please go ahead. 25:57 25 minutes, 57 seconds Thank you for the opportunity. Good afternoon sir. Congratulations for a very strong set of numbers. I hope I'm audible. Yeah. 26:05 26 minutes, 5 seconds Yeah. So, just a couple of questions. 26:07 26 minutes, 7 seconds Firstly, uh on the supply situation, you did mention that you know there's no need to sort of you are fully secure for a comfortable period of time as of now. 26:17 26 minutes, 17 seconds just wanted if possible can any granularity be shared in terms of which are the sources that we are sort of tapping at this point of time and from 26:26 26 minutes, 26 seconds HPCL's perspective uh you know any time period you want to attach to you know for how long we are secure I'm assuming 26:34 26 minutes, 34 seconds of course that the conflict continues to drag on through the first quarter as well then how are we placed and what are the geographies we are targeting for 26:43 26 minutes, 43 seconds alternative supply Okay. Any any other question or uh I have a couple more sir. Uh yeah. Yeah. 26:54 26 minutes, 54 seconds So the other question was uh uh did inventory gains actually help the numbers this quarter and if so if it is 27:01 27 minutes, 1 second possible to quantify and the third question was what was the LPG loss uh given the net negative buffer. Just wanted to understand the LPG loss that 27:10 27 minutes, 10 seconds was there in this squad. Those were my three. Thank you. 27:13 27 minutes, 13 seconds Sure. Thanks. Uh as always you win the early bird prize. Uh this time we have to send you a nice uh hamper uh for 27:20 27 minutes, 20 seconds that. Uh um but uh on the supplier situation see uh 27:27 27 minutes, 27 seconds uh dial back to uh February uh of 2026 when there was no prices what would be the crude I would have secured I would 27:36 27 minutes, 36 seconds have secured crude for two months of running. 27:41 27 minutes, 41 seconds That's all I would have secured. Of course we would have had term agreements and we would buy spots there. So at no point of time let me say barring a few 27:50 27 minutes, 50 seconds days here and there when uh markets are there but for most period of the time we have been having two months outlook for 27:57 27 minutes, 57 seconds crude all the time. So uh the normal situation which I have had on crude prevails. The challenge has been that in 28:06 28 minutes, 6 seconds the past you we were relying say half on the I'm just saying half as a figurative number not to be quoted exactly an extre 28:14 28 minutes, 14 seconds but we were relying on half to term contracts and half on spots of late given the challenge that a lot of term 28:21 28 minutes, 21 seconds contracts were from uh gal we had to rely a lot more on spot cargo so we have to do our spot purchases a lot more 28:29 28 minutes, 29 seconds frequently but at no point of time except for the first 3 4 days of the crisis in first week of March when there 28:36 28 minutes, 36 seconds was the shock and awe what was happening were we not covered with roughly two months of inventory which is normally what we carry two months of secured 28:45 28 minutes, 45 seconds supply and right now we are already in the market starting to lap of caros for July and we are getting enough caros so 28:51 28 minutes, 51 seconds the cost is more expensive in terms of geographies u well uh this was not a time to be either optimizing the crude 29:00 29 minutes which you could run in your refinery and that probably also impacted ed our uh GRMs to some extent because uh in 29:07 29 minutes, 7 seconds neither situation we would have run a particular mix of crude but right now we were running cruds which were available rather than which were the most 29:15 29 minutes, 15 seconds optimized for uh me so we have not bothered a lot on geographies which we are looking at uh but um if I just give 29:23 29 minutes, 23 seconds you u broad trends um pre crisis um give me one second I have that number written 29:30 29 minutes, 30 seconds somewhere pre crisis uh uh we were buying obviously a lot from uh Persian Gulf and of course from many other 29:38 29 minutes, 38 seconds places um also uh but post the crisis uh situation uh significant amount of uh 29:46 29 minutes, 46 seconds Russian crude um also came uh into the picture and uh in fact very early in the cycle we picked up uh um a large chunk 29:55 29 minutes, 55 seconds of allies together picked up a large chunk of Russian uh crude so things like Iran has gone down very considerably 30:01 30 minutes, 1 second Jans have We ran a lot of on those months 20 25% of my purchase was Iraq. 30:07 30 minutes, 7 seconds It has gone down considerably because nothing's coming out of Persian Gulf. Mhm. 30:11 30 minutes, 11 seconds On the contrary, Russian crude uh was available in the market on seas that was procured and there was a lot of uh other 30:18 30 minutes, 18 seconds crude even African cruds went up uh during this period. Uh some of we also got cruds from US. Some of you would know that we even picked up a cargo or 30:27 30 minutes, 27 seconds two from places like Venezula. Uh so that's the broad shift in the numbers uh which we uh have had. Um uh I hope that 30:37 30 minutes, 37 seconds answers your uh question on LPG. Uh to be fair um uh it shifted from a lot of uh term contracts in Middle East to 30:46 30 minutes, 46 seconds actually a lot of spot caros where at the time you were even buying uh spot caros on the sea in the market where you're less worried about uh whether it 30:55 30 minutes, 55 seconds was coming from geography or geography but more on when it can reach my shores. 30:59 30 minutes, 59 seconds uh but that shift has definitely moved away from uh Persian Gulf to other locations. Now parts of that world is also existed and some of the gas from 31:08 31 minutes, 8 seconds Persian Gulf is also coming out in different forms. Okay. 31:12 31 minutes, 12 seconds On your second question on inventory gain maybe I'll ask director finance to uh give his opinion. 31:18 31 minutes, 18 seconds Yeah. Yeah. It's true that uh there were elements of inventory gain which are sitting in our books of accounts but 31:28 31 minutes, 28 seconds to be realistic considering the fact that there have been so much of volatility plus the accounting adjustments because 31:35 31 minutes, 35 seconds of the NRV reductions and all they would not like to share the uh numbers once uh the stability is there as regards the 31:45 31 minutes, 45 seconds pricing and it returns back to normal. I think that would be the right time for us to share the numbers so that you can accordingly put it in your model. 31:53 31 minutes, 53 seconds Whatever numbers I would give otherwise would would lead to some incorrect adjustments in your model. So I will I 32:00 32 minutes refrain from giving the inventory gains or losses numbers there. But coming to your LPG under recoveries, the full year 32:08 32 minutes, 8 seconds under recovery was rupees around 5,200 crores and for the quarter it was around 1350 crores. But against this not 32:18 32 minutes, 18 seconds against this but uh we have also got around five installments of uh the LPG compensation totaling to around 3,300 32:27 32 minutes, 27 seconds coursees during this period in this current financial year. Thank you. Got it sir. Thank you very much sir. I'll come back if I have more question. 32:36 32 minutes, 36 seconds Thanks for your time and all the Thank you. We will take the next question from the line of Tari from Philip Capital India. Please go ahead. 32:49 32 minutes, 49 seconds Hi sir. Uh good afternoon and uh thanks for the opportunity. So sir there have been number of uh figures which are there in the market in terms of the kind 32:56 32 minutes, 56 seconds of uh combined losses that all marketing companies are currently incurring. 33:01 33 minutes, 1 second abroad ballpark is pegged around thousand cr. I just wanted to understand what that number for us uh in terms of our daily and rate of loss. Uh that would be my first one. 33:12 33 minutes, 12 seconds Yeah, thank you. Uh thanks uh I think that's a question on mind of everyone. 33:16 33 minutes, 16 seconds Uh but uh as I said in my opening uh remarks uh uh we are not going to give a forward-looking uh guidance on um on 33:24 33 minutes, 24 seconds this. I'm also fully aware on what kind of numbers we read the press every day. 33:28 33 minutes, 28 seconds I think honorable minister from the podium at a CI conference yesterday talked about the correctional number for all the OMC's there. Obviously he does 33:37 33 minutes, 37 seconds not know the exact numbers which we have because being listed companies the numbers are with us only. uh but all I would say we are incurring losses uh 33:45 33 minutes, 45 seconds right now and we are doing our best to manage the losses there and what could be the order of magnitude uh is known um 33:54 33 minutes, 54 seconds and I'm sure at the right time right decisions uh would be taken but we will not be giving a forward-looking guidance 34:00 34 minutes because uh um being a listed company being financially responsible uh it becomes very risky to give a guidance in 34:10 34 minutes, 10 seconds a volatile environment right uh like we have right now. 34:16 34 minutes, 16 seconds Uh fair enough. So I I I'll um like you know take that. Uh secondly sir my uh query was with regards to uh procurement 34:24 34 minutes, 24 seconds and days of inventory. So you said that like you know you mentioned about crude that we have covered for uh coming two months. So what's the situation with 34:31 34 minutes, 31 seconds respect to key products? How much of product inventory are you holding as of now in terms of uh days of uh holding for petroleum diesel and also for LPG? 34:41 34 minutes, 41 seconds you can help us understand that and uh secondly procurement fund when uh when we are reaching out in the spot market 34:48 34 minutes, 48 seconds so u is is that through traders I mean how does that procurement work I mean um uh do we have basically a say in terms of which geography we are going to 34:57 34 minutes, 57 seconds procure from or it's just a tender sorted out for a for a trader to fulfill irrespective of where it is getting fulfilled from 35:04 35 minutes, 4 seconds I think on uh first point on days of inventory let me keep it very simple for all of you At a macro level, 35:14 35 minutes, 14 seconds the supply chain on liquid fuels is roughly moving similar to what it was pre crisis. What do I mean by that? 35:24 35 minutes, 24 seconds Pre-crisis, I will always book if I was sitting in middle of May, I would be looking July caros. That is what I'm doing right now. I have my June fully 35:32 35 minutes, 32 seconds covered. that is you uh for Wisec we always had 45 to 50 days fully covered and for Mumbai we would have 30 to 35 days covered because that was a typical 35:41 35 minutes, 41 seconds cycle all through this period barring a day or two here and there we've had this fully covered and we are very comfortable on the crude supplies we 35:48 35 minutes, 48 seconds don't see an issue on the crude supply at all LPG there were challenges there but with the passage of time doing 35:55 35 minutes, 55 seconds multiple things and also depth management at the country level on LPG by increasing production um managing uh 36:04 36 minutes, 4 seconds or uh directing the supplies and also some amount of demand dampening that situation has been managed and there is 36:11 36 minutes, 11 seconds on a daily basis across all OMC's across the ministry we look at coverage are we comfortable we are very comfortable on 36:19 36 minutes, 19 seconds the coverage we have uh for LPG available with us um there is going to be no shortage in May there is going to 36:27 36 minutes, 27 seconds be no shortage in June and as July comes in there is going to be no shortage in July also we are that's anyway we always looked at 45 to 50 days there on the 36:36 36 minutes, 36 seconds product availability in my supply chain that's roughly similar to what it was like I would carry sometimes if I 36:43 36 minutes, 43 seconds remember correctly uh 30 days roughly I would carry um and depending on where I'm on pipeline or off pipeline there 36:52 36 minutes, 52 seconds but if I look at the quantum of inventory we are carrying uh barring the operational variations which should happen some days it could be a few higher or 37:00 37 minutes they roughly have been carrying the same inventory from the product perspective. 37:05 37 minutes, 5 seconds So nothing much has changed on that except prices. 37:10 37 minutes, 10 seconds Understood sir. on the crude procurement front. Um so why I asked that question is that because um there are number of reports which have indicated that 37:18 37 minutes, 18 seconds there's almost a 11 million barrel uh per day shortfall of crude oil production and uh I mean uh the 37:26 37 minutes, 26 seconds procurement actually is a function of both time and the shortfall. So while like you know a a deeper shortfall in a 37:34 37 minutes, 34 seconds short period of time is manageable but as time progresses and if the shortfall continues incremental procurement can get difficult. We just wanted to 37:41 37 minutes, 41 seconds understand that when you're procuring crude from the spot market, how is it like you know how the how the value chain works? I mean you you reach out to a trader or you reach out to the market 37:50 37 minutes, 50 seconds directly. How does it work? If you can explain that um that is the end. 37:54 37 minutes, 54 seconds I I think uh I'll again repeat what I've said twice in the call that we are fully covered as a company and as much as I 38:02 38 minutes, 2 seconds know about the sector also we are covered on it. Um in our earlier on this call we have been saying that we buy 38:08 38 minutes, 8 seconds groups from 41 different countries and that count might even this is only HBCL other companies might buy from another market 38:16 38 minutes, 16 seconds um or as a nation we buy that any year we run multiple in our refiners we can run anywhere close to 180 to 190 type of 38:24 38 minutes, 24 seconds uh cruds and it's not that crude has disappeared from the market enough of that is uh available so there are 38:31 38 minutes, 31 seconds multiple processes for buying crude there are some agreements ments which we have we've been doing as a firm also even in this current situation there are 38:39 38 minutes, 39 seconds some term agreements on which crudes are coming if I had a term agreement with any African country that is not impacted by this thing if I had a term agreement with a South American company that is 38:47 38 minutes, 47 seconds not impacted in the current crisis that crude is coming then there are spot caros all kinds of spot cargos which come in as you said we buy through a 38:56 38 minutes, 56 seconds tender there are some when you go to market there are different ways of uh inviting uh things so as and when we have a need and roughly once a week we go into the market those of you are 39:04 39 minutes, 4 seconds close to the trade can look at Kepler data and all those kind of things and don't they have every transaction sometimes you do a transaction and next day is reported in the what price we 39:13 39 minutes, 13 seconds bought it lot lot of people always have nice ways of getting it but if you track Kepler and all you can figure out when do we go to buy when does IOC go when 39:22 39 minutes, 22 seconds does DPCL when does Reliance go to buy all of us have been going very regularly all I would say is the instances on spot 39:29 39 minutes, 29 seconds has increased right now because like we have uh some term contracts in Persian Gulf which are not able to supply 39:37 39 minutes, 37 seconds consistently right now. Hence we have to buy a lot more from squat. Uh but that's not a part of my business I get really worried about. Of course we are very we 39:46 39 minutes, 46 seconds keep a eager eye vision on it because any movement up and down even try to time out should I go today if something want to happen tomorrow all those things 39:54 39 minutes, 54 seconds we try to do to mitigate the impact but I don't worry on the supply side of it as I said employees have said three 40:02 40 minutes, 2 seconds times I now said on the call we are fully secured on the crude supply we are very comfortable on the supply 40:09 40 minutes, 9 seconds sure so thanks so much for taking my questions I will get back in the further question thanks Thank you. We will take the next 40:18 40 minutes, 18 seconds question from the line of Satakita from DSPM. Please go ahead. Hi, good afternoon. Am I audible? 40:27 40 minutes, 27 seconds Yeah. Yes. Um yeah, congratulations uh to the team uh for the good set of numbers. I just had a couple of questions both revolving around Cape. Um 40:36 40 minutes, 36 seconds so u you highlighted on the opening remarks that Cape uh you have curtailed bit in this year. Um and if I see the 40:44 40 minutes, 44 seconds presentation we have maintained the number of around 77,000 crores for the 5year period from FI24 to FI28. 40:52 40 minutes, 52 seconds So uh and in FI26 I believe we have uh disclosed that we have spent 15,700 crores. So all these numbers set aside 41:00 41 minutes uh and the current um volatile volatile market in Q1 also you mentioned the weakness how do we see the capex going 41:08 41 minutes, 8 seconds forward is there will there be a significant downward revision because I think that will be warranted. So how should we think about uh that 41:17 41 minutes, 17 seconds yeah I think uh uh all good managements will respond to the stimuli which come 41:24 41 minutes, 24 seconds from an external environment. uh when I said we had curtailed capex last year maybe it did not show much in the numbers but you won't know what our 41:32 41 minutes, 32 seconds internal plans were maybe they were higher they were brought it down to a level and overall numbers also do not show at what price of the time in the year I spent because that also has an 41:40 41 minutes, 40 seconds impact and third we should not forget that we were already committed to a large capex uh stream which is going now forward looking if I look at where I am 41:48 41 minutes, 48 seconds today um obviously I'm spending on HR as well and whatever needs to be spent uh to finish that because uh um to 41:56 41 minutes, 56 seconds commission that project. So whatever capex has to go in there is going there irrespective of what is else is happening there. But wherever I have 42:04 42 minutes, 4 seconds discretion on starting a new project, I'm taking the power and saying okay let's come back to this decision after 8 weeks or 12 weeks. Um lot of our capex 42:13 42 minutes, 13 seconds as you can know from a break up is things like modernization of our retail outlets. Sometimes we have a pipeline to lay sometimes we have a depo to renovate. 42:22 42 minutes, 22 seconds Sometimes we have to do a renovation in an emergency because there's a safety thing. So if there is an safety emergency, we are going ahead with that capex. But if there is a discretionary 42:31 42 minutes, 31 seconds thing that okay, we have a choice to start the renovation 3 months later, we will postpone that decision. So that those are judicious calls. Uh uh the 42:39 42 minutes, 39 seconds management team is taking as of now. I think I don't remember the number off hand but uh our projected capex for this year is slightly lower than last year. 42:49 42 minutes, 49 seconds But that does not mean that we are vetted to that number. If uh war ends tomorrow and we get into a booming cycle, we might do more than that. But 42:57 42 minutes, 57 seconds if the war continues for three more quarters, we obviously will do less than that. That's the response strategy I would have on this. Having said that, 43:05 43 minutes, 5 seconds every committed capex and anything which is run towards completing our past capex is being incurred as we speak. 43:14 43 minutes, 14 seconds Understood. So fair enough. This was a very elaborate answer. Thank you. Um so secondly, one small question. You mentioned about the incident at bar um 43:22 43 minutes, 22 seconds and uh a very few number of units that were impacted. Any extra capex that have had to incur due to this uh or that will be very small figure. 43:32 43 minutes, 32 seconds I just said six heat exchangers in a refinery which has 6 to 800 heat exchangers and thousands of other thing 43:40 43 minutes, 40 seconds was impacted. There was a small amount for refurbishment and there will be some amount of I think insurance claims and also spent of things around it. So it's 43:48 43 minutes, 48 seconds uh even if there's a minor thing extra it will be a rounding off error in the entire thing. So it's not it's a very localized thing. It's just that uh when 43:56 43 minutes, 56 seconds the physicality of that happens uh you have to take some there is some time time of downtime uh which should be there and unfortunately for us it 44:04 44 minutes, 4 seconds happened on a day when uh um one day prior to the uh inauguration of the plant which was unfortunate but uh we 44:11 44 minutes, 11 seconds have to live with that. Uh we will be bouncing back very soon on that. I said earlier and we have given it in guidance to stock markets and the stock exchanges 44:19 44 minutes, 19 seconds that um we hold the guidance which you have given the stock exchanges and if there is any further update on this we will duly inform the stock exchanges. As 44:26 44 minutes, 26 seconds of now I would say we have visibility of coming out with if I remember the exact words you said in the second fortnight 44:34 44 minutes, 34 seconds of May we will start producing some products from the refinery. Okay, got it. This was uh helpful sir. 44:43 44 minutes, 43 seconds That's it from my second. Thank you. 44:47 44 minutes, 47 seconds Thank you. We will take the next question from the line of Mayan Kumahwari from Morgan Standi. Please go ahead. 44:55 44 minutes, 55 seconds Y thank you for the call sir. despite the tough times. Uh can you just talk a bit about in terms of fruit sourcing uh 45:04 45 minutes, 4 seconds what you are seeing in the market? You can be generalist. You don't have to be very specific HPCL but can you just give us an idea around when you're going in 45:12 45 minutes, 12 seconds the market today to source crude what kind of premiums insurance costs how they have moved over the last few months? Uh and how are you kind of 45:22 45 minutes, 22 seconds thinking about that now managing it as you're sourcing for July? 45:26 45 minutes, 26 seconds Yeah Mike I think that's a a good question at the highest level I would say in every element there is the 45:34 45 minutes, 34 seconds volatility in it whether it is price whether it is u even insurance premium this is be an example of insurance 45:42 45 minutes, 42 seconds obviously insurance premiums have gone up that's a known fact earlier we would have taken a long insurance policy now sometimes you have to go cargo by cargo 45:50 45 minutes, 50 seconds on some specific insurance policies so that obviously increases the times uh involved when there is some movement related aspect especially anything 45:59 45 minutes, 59 seconds coming close from Middle East you have to be doubly sure on movement you have to keep track of movements of course things coming from other sides are 46:05 46 minutes, 5 seconds actually moving quite uh normally when we go to spot are we seeing lesser number of caros I don't think we are 46:13 46 minutes, 13 seconds seeing lesser number of caros um obviously there are certain grades which are not available u because they are curtailed or there are very little 46:22 46 minutes, 22 seconds available but if in a particular inquiry 40 people would have participated earlier. Actually roughly 46:29 46 minutes, 29 seconds around same number of people are participating. Uh in terms of quotes from the people we definitely see a lot more variation. In the past the quotes 46:37 46 minutes, 37 seconds would have been say uh if the delta was X earlier between the highest and the lowest sometimes these times there are 46:46 46 minutes, 46 seconds three X deltas. What also happens when this is there are times when you can actually be very opportune on this. It 46:53 46 minutes, 53 seconds happened with us last two three weeks ago. We were we sourced a particular cargo. Just as we finished 47:00 47 minutes internal approval on that cargo, an event happened outside where we immediately thought prices will fall down. Our team reacted immediately. This 47:09 47 minutes, 9 seconds was after we had given the formal approval and approval and with the same parties they could negotiate a discount a significant discount a good 47:18 47 minutes, 18 seconds singledigit dollars in terms of discount and that's obviously need saving. The need for agility in cargo buying has 47:25 47 minutes, 25 seconds definitely gone up. So I as a even as a stateowned enterprise I can't always say that oh I will set back into my process. 47:32 47 minutes, 32 seconds I will give you a tender you give me a response after 24 hours. We've had to change processes where our decision making body is sitting right while our trading team just behind the trading 47:40 47 minutes, 40 seconds team and giving them a decision on the spot. So that's the kind of reaction and agility which is needed. I think in moments like this agility also gives you 47:50 47 minutes, 50 seconds opportunities and wherever possible we have tried seizing those opportunities. 47:54 47 minutes, 54 seconds I don't know whether I answered your question but that's how I see the market. If there are more specific details we'll be happy to put you in touch with our uh trading desk for further questions. 48:04 48 minutes, 4 seconds Sure sir. So the second question is more related to and this is what you talked about uh I think which is the digital ascent thing that you put it on your 48:12 48 minutes, 12 seconds slide pack. uh I think you have been I think a year and a half two years back you guys talked about on AI and now 48:19 48 minutes, 19 seconds you're talking about generative AI in your processes can you talk us through of how you're kind of getting it through 48:26 48 minutes, 26 seconds what is the story that that you're kind of pushing and what has been the impact in terms of cost savings if at all you are even thinking about these things 48:35 48 minutes, 35 seconds into the costsaving focus that you guys have. 48:39 48 minutes, 39 seconds No thanks. Uh let me just uh I'm trying to figure out which specific slide my team has sent. It was 41 slide number 41. 48:48 48 minutes, 48 seconds Okay. Sorry. Okay. Parikal has been on the right hand side. 48:52 48 minutes, 52 seconds Actually next time we will pro give you a updated version of this. Uh my apologies we should have had the latest uh version on this. In some ways 49:01 49 minutes, 1 second parallel was the program which uh ran for a long period of time. uh and obviously we did some amount of uh uh 49:09 49 minutes, 9 seconds movement uh on digital front in the last 6 to 9 months u while we have not changed the name of the program actually we have not even given it a new name we 49:18 49 minutes, 18 seconds have re-energized our digital effort so what did we do there were a lot of different initiatives which had been done some good some not so good we had 49:27 49 minutes, 27 seconds done a big SAP change over rollover from legacy system into SAP so a lot of things had been done but we got one of 49:34 49 minutes, 34 seconds the best consultants um to work on a northstar for us and give a very deep assessment on where we are. This happened in the last I think third 49:43 49 minutes, 43 seconds quarter of the year or fourth quarter somewhere around November December. They have looked at all our business and given us a frank as is assessment and a 49:53 49 minutes, 53 seconds road map ahead. Parally we have formed a large digital transformation team which uh reports to director of finance and me 50:01 50 minutes, 1 second basically sit centrally. It has now been agumented to 35 uh people. We have handpicked people from across the uh 50:08 50 minutes, 8 seconds place who are now tasked in a three-year time frame to uh move forward on the digital initiative so that there is a 50:16 50 minutes, 16 seconds central coordination of all the digital uh initiatives. What are the themes we are doing? Three or four themes uh we 50:23 50 minutes, 23 seconds are doing. one bringing in digitization automation in many parts of 50:31 50 minutes, 31 seconds our business like I'll just give you an example many of you would know that about 85% of our retail outlets are connected real time uh with our central 50:41 50 minutes, 41 seconds service we have a system where we can actually see how much petrol or diesel is being filled from which nosal in which of my retail outlets I can see 50:50 50 minutes, 50 seconds that sitting in my office actually if I want if I have that much of However, there were two things we were doing. We were not leveraging the data enough 50:58 50 minutes, 58 seconds and second, we were stuck at 85. Now, just to give you a theme, one thing we've said in two months, let's get it down to all the legally operating. By 51:06 51 minutes, 6 seconds legally, I mean to say there are some places where you have disputes with the pumps, but anything which is kosher in our system, we are connecting it 51:15 51 minutes, 15 seconds immediately. Second, we have put formed in a team which is looking at data rare. 51:18 51 minutes, 18 seconds Now you can imagine in this current pricing regime there is proliferation of um diesel from retail outlets to 51:26 51 minutes, 26 seconds industrial customers. We are catching those guys using data. Every evening reports are published. Mails go out. 51:34 51 minutes, 34 seconds Sometimes dealers are ask for show causes. Sometimes they are suspended. If we find they are doing transaction which is larger than what a retail outlet my 51:42 51 minutes, 42 seconds system can configure. Oh if it is greater than so much later we sold in there is a challenge in that. That's an example which we are doing. So 51:50 51 minutes, 50 seconds saturation completing the setup is one thing. Second, there are parts of our system which are not connected by it. 51:57 51 minutes, 57 seconds Like our supply chains are not fully connected by uh IT. Some terminals etc. 52:01 52 minutes, 1 second I can't read the what is the capacity on all my term uh tanks directly. I can read it at a terminal but there so those 52:09 52 minutes, 9 seconds kind of interconnectivities uh we are doing. Third, we are drive using technology to drive in efficiencies. And I'll give you an example from our 52:17 52 minutes, 17 seconds refining setup where in many of the units in last 12 months, we have done the RTO's and uh APCs as they are called 52:25 52 minutes, 25 seconds uh um real time optimizers um those kind of stuff and in some cases we're getting half a percent yield 52:33 52 minutes, 33 seconds extra. So last year we had done pilots in both Mumbai and Visc refinery. This year we have decided that every single 52:40 52 minutes, 40 seconds unit where we want to put RTO we will put it in this financial year we will saturate it this year and HRL once it gets steamed we'll also get onto that so 52:48 52 minutes, 48 seconds that's the third theme uh which we are uh bringing in fourth uh obviously in line with the word uh where do we use AI 52:57 52 minutes, 57 seconds generative AI again a real example I will give you we have a vehicle tracking system where 30,000 of our uh trucks 53:04 53 minutes, 4 seconds which go on the road are tracked every Okay. Now it is not they give us if it stops at any place if it goes off route 53:12 53 minutes, 12 seconds it should give an alarm. We we were getting 80,000 alarms a day. Obviously nobody's doing anything with the alarms but using AI systems now we have managed 53:20 53 minutes, 20 seconds to get it down to few hundred real alarms a day custom AI tool which we have put in. Uh so that's just as an 53:28 53 minutes, 28 seconds example we are doing procurement we are trying to use AI. So you can see aentic AI use cases etc. And we are also leveraging the power of our people. 53:37 53 minutes, 37 seconds We're running uh as we speak a organizationwide hackathon where our youngsters are participating in some of these things and creating those. So it's 53:45 53 minutes, 45 seconds a holistic program. So next and this call we'll give you an update on the paralp. Uh we might even give you a new name for that but it's a lot of effort. 53:54 53 minutes, 54 seconds Uh part of it is catch catching up part of it is leak crawling. That's very clear. Thank you. 54:06 54 minutes, 6 seconds Thank you. We will take the next question from the line of Sumit Rora from Smartoon Capital Private Limited. 54:13 54 minutes, 13 seconds Please go ahead. 54:15 54 minutes, 15 seconds Yeah. Hi sir. Very good afternoon to you and team FCCL. Sir, firstly I would I would like to congratulate you and your entire team for a absolutely stunning 54:24 54 minutes, 24 seconds performance in an extremely tough environment. So uh great show sir and uh I I would also like to you know uh you 54:32 54 minutes, 32 seconds know uh talk a few good words about our director Mr. Narang. I mean it's been a real honor and a pleasure interacting with him over a decade. So sir thank you 54:41 54 minutes, 41 seconds very much. It has been a real honor for all investors and analysts you know to uh to always you know speak to you at conferences and on analyst calls. So sir 54:49 54 minutes, 49 seconds thank you and wish you all the very best and for for a great future sir. 54:54 54 minutes, 54 seconds Now sir coming to uh this few questions which I have from my side. So si you know firstly you know this government has known to be you know a very 55:02 55 minutes, 2 seconds proactive government as you know for the conference we had uh you know in last September as well you know where our honorable oil minister spoke very 55:09 55 minutes, 9 seconds clearly you know talking about you know bold initiatives. So sir, do you think that you know uh the probably the time you know has come wherein you know uh 55:18 55 minutes, 18 seconds there could be a possibility that you know we could go back to something like you know what we wore in the past like a daily kind of a pricing mechanism or 55:25 55 minutes, 25 seconds some or or something of that sort. Uh sir secondly you know there is absolutely been so much of noise you know in the media about this thousand cr 55:33 55 minutes, 33 seconds figure but sir is my understanding correct that a substantial part of this thousand cr would be the lpg part which is actually the the running account of 55:41 55 minutes, 41 seconds the government and not necessarily boned by the OMC's so is my understanding correct on on that as well that you know the lpg losses are the ones which are 55:50 55 minutes, 50 seconds contributing substantially towards the thousand cr if at all so it is which is quoted in the media third my my third question sorry on the Balmer refinery. 55:59 55 minutes, 59 seconds Uh you know now the fact matter of fact is that you know we are ramping it up. 56:03 56 minutes, 3 seconds So our dependence to buy products from third party would start coming off very sharply. So can you you know just throw uh some bit of highlight on that and s 56:12 56 minutes, 12 seconds just one last point as our honorable oil minister even yesterday spoke about you know that he interacts one and a half daily with all the CNDs of of all the 56:20 56 minutes, 20 seconds oil companies. So the what uh what is the general thought process because even today the RBI governor has spoken about you know fuel price hikes you know 56:28 56 minutes, 28 seconds happening. So what is it that the government is actually contemplating in terms of you know pricing because you know they are a very reformist government. So I'm I'm fairly confident 56:37 56 minutes, 37 seconds that they will take the correct measures but you know if you can just share some thought on that it' be it'll be very good sir. Thank you so much. 56:45 56 minutes, 45 seconds Thanks um that's a lot of questions. 56:47 56 minutes, 47 seconds I'll have to my memory to remember all but if I forget you can remind me. I think let me start the last point which 56:54 56 minutes, 54 seconds is there. See um obviously as uh honorable Mr. S said on the stage yesterday uh there has been a very 57:01 57 minutes, 1 second active coordination across OMC's um across all the sector companies with the government um and that does include 57:09 57 minutes, 9 seconds a daily meeting um uh at least six days a week if not seven days uh to look at things. We obviously discuss all the 57:17 57 minutes, 17 seconds situations, what problems we are having, what issues all um there. Now what the discussion forward looking is I'm not going to discuss in this forum. Um not 57:25 57 minutes, 25 seconds fair for me uh to uh do that. But all I would say is uh again I'll draw from what is in the public domain. Uh the 57:34 57 minutes, 34 seconds honorable prime minister um said that the companies are taking the challenge of it. I think RBI governor also in he 57:42 57 minutes, 42 seconds was speaking at a conference today. he was on television about a couple of hours ago spoke about it. The honorable minister spoke about it. I think there is a recognition and to be fair the 57:51 57 minutes, 51 seconds OMC's have withtood the shock to the economy at this point of time. uh now whether the shock is yes there is an 57:59 57 minutes, 59 seconds some on account of uh LPG losses also because LPG was very scarce commodity and prices were very high to be fair 58:06 58 minutes, 6 seconds there are losses on liquid products also because uh crude which we are buying at 60s uh in terms of dollars uh 60 65 58:16 58 minutes, 16 seconds 3 months ago or four months ago is easily touching 100 at times 110 120 so crude has gone up by 70 75% on what we 58:25 58 minutes, 25 seconds were buying earlier of 304 $40 in absolute term. So it has obviously impacted the product prices uh the realization of product prices also which 58:32 58 minutes, 32 seconds at times depending on source refinary efficiency and other things can be significantly in negative itself. Uh I think everybody understands the issues 58:41 58 minutes, 41 seconds and I'm sure right decisions at the right time uh would be taken balancing all those factors what those decisions are not fair for me to comment on this. 58:50 58 minutes, 50 seconds The only thing I would say is uh I think you were part of that group when uh we had the panelists meet in Mumbai a few 58:59 58 minutes, 59 seconds months ago and both the then secretary Mr. J and the honorable minister actually both from the stage had talked 59:06 59 minutes, 6 seconds about the fact that they understand uh the dynamics and uh they had encouraged everybody to look at the sector as a 59:13 59 minutes, 13 seconds long-term sector not as a short-term spike. uh just in the last three quarters there were enough people who were saying oh oil companies are earning 59:21 59 minutes, 21 seconds more than what they should be earning this quarter they are earning less than what they should be earning but hopefully life from a longerterm 59:29 59 minutes, 29 seconds perspective life would uh balance out on those on the more operational question on bar product and all yes once all 59:37 59 minutes, 37 seconds those things stabilize uh depending on how fast diesel growth uh HPCL's dependence on outside products to reduce 59:44 59 minutes, 44 seconds it won't come to zero So because there are obviously exchanges we do with other oil companies and there are some packets there because of the configuration we 59:52 59 minutes, 52 seconds will need but there would be place times when um at least for the next few years we'll be potentially surplus with uh uh 1:00:00 1 hour diesel and we are working on plans on how to utilize that. Of course if the economy grows faster and diesel grows faster we'll be able to absorb it in 1:00:07 1 hour, 7 seconds India. If not we will have some amount of product which we can export outside the country and we are trying to figure 1:00:14 1 hour, 14 seconds out what's the best way of it. Some studies have been done some outreaches have been done. Uh but that we will we had moved far further down on that but 1:00:23 1 hour, 23 seconds after the crisis we have paused that because right now every country is looking at securing the product for itself. Once the situation eases and the 1:00:32 1 hour, 32 seconds world is back to the normal, we will again think of what's the best way of utilizing our surplus product. But we are we are fully conscious of the fact 1:00:40 1 hour, 40 seconds that we would literally become uh depend I would say we still take product from two of our joint ventures or three of 1:00:48 1 hour, 48 seconds our joint ventures but as an ecosystem u would be reasonably self-sufficient on most products. 1:00:58 1 hour, 58 seconds Okay sir. 1:01:00 1 hour, 1 minute Thank you so much and wish you all the best sir. Thanks a lot. Thank you. 1:01:06 1 hour, 1 minute, 6 seconds Thank you. We will take the next question from the line of Vadar Gandhi from Suham Asset Managers Private Limited. Please go ahead. 1:01:17 1 hour, 1 minute, 17 seconds So my first question is uh the big losses on diesel and some on 1:01:24 1 hour, 1 minute, 24 seconds petrol have started. Have the private players sort of tried to increase prices and price ventures out or their market 1:01:32 1 hour, 1 minute, 32 seconds share roughly remains what it was before this event happened? 1:01:38 1 hour, 1 minute, 38 seconds Sorry, the line got distorted in between. Could you repeat the question please? 1:01:42 1 hour, 1 minute, 42 seconds Yeah. Yeah. So my question was that have has the market share of private players gone down in petrol diesel? Have they priced themselves out of the market or 1:01:51 1 hour, 1 minute, 51 seconds uh they continue to sell at these high losses and their market share is roughly what it was in Jansen? 1:01:58 1 hour, 1 minute, 58 seconds I think uh you all are very smart analysts. You can just take a drive down the highways and figure out and you'll get the answer to your uh question. All 1:02:07 1 hour, 2 minutes, 7 seconds I would say in this is in this moment of crisis there were three oil companies who were standing with the Indian consumers. 1:02:15 1 hour, 2 minutes, 15 seconds They were the three OC's. They stood by the Indian Indian consumers. They faced the brunt. We got a lot of negative press for cues in front of our retail 1:02:24 1 hour, 2 minutes, 24 seconds outlets. Well, the cues are only happening at the retail outlets which are supplying. No Q was going to be ever reported at the retail outlet which is not not supplying. So if I have a wish 1:02:33 1 hour, 2 minutes, 33 seconds right now, if I had more money, I would have done a tagline which says that we stood by the customers. That's all I would say on this. You guys are your own 1:02:40 1 hour, 2 minutes, 40 seconds judges. You take a drive around and you can figure out where the market shares have gone. 1:02:46 1 hour, 2 minutes, 46 seconds My second question is that uh you probably are having big losses on diesel and uh also significant losses on 1:02:56 1 hour, 2 minutes, 56 seconds petrol marketing but you are at the same time making uh high cracks on especially on diesel uh and on to the extent what 1:03:05 1 hour, 3 minutes, 5 seconds you outsource you probably are making much smaller losses. So the number which the uh minister has quoted is it uh if 1:03:12 1 hour, 3 minutes, 12 seconds you would give us some color is it closer to the net number uh of the the extent to which the losses on marketing exceed the losses which you make on 1:03:21 1 hour, 3 minutes, 21 seconds refining or is is it the gross marketing loss number yeah I twice or thrice said in the call 1:03:29 1 hour, 3 minutes, 29 seconds uh we will not be giving any forwardlooking guidances I think there is a number which was put in public domain it's fair 1:03:37 1 hour, 3 minutes, 37 seconds um that was maybe a directional number given by the honorable minister. 1:03:42 1 hour, 3 minutes, 42 seconds I lead a listed company. Moment I give a guidance on an analyst call which is recorded that I have to be sure of the 1:03:49 1 hour, 3 minutes, 49 seconds numbers and given the volatile situation in two or three instances we have said that we are uncomfortable giving a number and we will not give that number 1:03:57 1 hour, 3 minutes, 57 seconds because it's unfair at this point. What if prices change tomorrow the things will go all over the place. I know you guys are anxious on that number but as a 1:04:04 1 hour, 4 minutes, 4 seconds responsible listed company I will not get that number. 1:04:09 1 hour, 4 minutes, 9 seconds Lastly just uh I hope that uh in the current year if unfortunately the world drags on for a longer time we won't have 1:04:18 1 hour, 4 minutes, 18 seconds a repeat of FY23 when uh you are allowed to lose money in the red. So I hope uh 1:04:26 1 hour, 4 minutes, 26 seconds that it is ensured that to the authorities that matter it is conveyed that it is not fair to allow a company 1:04:34 1 hour, 4 minutes, 34 seconds which is doing its national duty to go into the red. 1:04:39 1 hour, 4 minutes, 39 seconds I think there are enough instances of uh the government thinking um on this in public domain 1:04:47 1 hour, 4 minutes, 47 seconds as far as uh I recall just in at the time honorable prime minister was addressing the parliament in response to 1:04:55 1 hour, 4 minutes, 55 seconds the uh president's speech at the inception of every year which is given in parliament. He actually mentioned the 1:05:02 1 hour, 5 minutes, 2 seconds fact that uh with a lot of pride that uh many of the state run companies which used to languish earlier are performing very well and doing the duties. 1:05:11 1 hour, 5 minutes, 11 seconds Similarly for those who were at the analyst meet both the then secretary Mr. 1:05:15 1 hour, 5 minutes, 15 seconds Panka Chen and the honorable minister from the dis last year at Glen when we met had clarified this point very clearly and encouraged all of us to look 1:05:24 1 hour, 5 minutes, 24 seconds at the long term when you're dealing with these companies rather than looking at uh the short term. Uh just give me 1:05:31 1 hour, 5 minutes, 31 seconds one second. How many so uh um this uh is something which um 1:05:41 1 hour, 5 minutes, 41 seconds um I think that should be enough for us to give the clue that uh nobody's going to be left hanging high and dry. All what we can say from our side we are 1:05:49 1 hour, 5 minutes, 49 seconds definitely doing what is required to manage the situation and we are doing it with a lot of custo uh right now a lot of ski. 1:06:00 1 hour, 6 minutes Thanks a lot sir. 1:06:05 1 hour, 6 minutes, 5 seconds Thank you. Going to take the next question from the line of Yokesh Pat. Please go ahead. 1:06:12 1 hour, 6 minutes, 12 seconds Thanks for an opportunity sir. 1:06:16 1 hour, 6 minutes, 16 seconds Come numbers side again but I hope uh you will be able to share it not on the pricing side. uh what is the proportion 1:06:23 1 hour, 6 minutes, 23 seconds of petrol diesel and the ATF HPCL purchase from the other refiners to market at the HPCL pump. If you could 1:06:32 1 hour, 6 minutes, 32 seconds share these numbers uh in the million metric t that would be helpful. 1:06:38 1 hour, 6 minutes, 38 seconds I think uh what I would suggest is on this one you can reach out to our uh corporate finance team they can share the detailed numbers you can drop them a 1:06:46 1 hour, 6 minutes, 46 seconds day will give you the share numbers. I'm conscious of everybody's time on um on this. We do take product from others and I think that's a fairly declared number. 1:06:54 1 hour, 6 minutes, 54 seconds Uh some of and what we have taken in the last quarter or we are taking right now is roughly in the same ratios which we were doing uh earlier. We can give you 1:07:02 1 hour, 7 minutes, 2 seconds the exact numbers. Uh please take it offline with our corporate finance team. 1:07:08 1 hour, 7 minutes, 8 seconds Okay. Second question again the prewar level we used to take the Saudi benchmark for the prices. Now in this 1:07:16 1 hour, 7 minutes, 16 seconds current scenario a quite fluid scenario uh what would be the ideal benchmark for the calculations for the LPG prices and 1:07:26 1 hour, 7 minutes, 26 seconds also wanted to understand a key challenges in sourcing a LPG from United States. If you could little bit throw some lights on this. 1:07:35 1 hour, 7 minutes, 35 seconds The benchmark uh obviously Saudi CP is used as the benchmark that itself has gone very high but not only benchmarks 1:07:42 1 hour, 7 minutes, 42 seconds the premium of the benchmarks have also gone uh very um uh hire in the uh re 1:07:49 1 hour, 7 minutes, 49 seconds recent past. Um I think uh there is one benchmark which is used in the government. Uh I'm sure the government 1:07:56 1 hour, 7 minutes, 56 seconds takes care of its benchmark. Um for what you guys do I think um you'll have to fend for yourself in terms of what benchmarks do you want to use. Only 1:08:04 1 hour, 8 minutes, 4 seconds thing I would say is from the benchmarks it is a very volatile situation as compared to what it was earlier both in terms of benchmarks being high and the 1:08:13 1 hour, 8 minutes, 13 seconds premiums on top of the benchmark. That was the first thing. What was the second question? 1:08:17 1 hour, 8 minutes, 17 seconds Say SA exchange what elements go into know that was the US uh 1:08:27 1 hour, 8 minutes, 27 seconds no I got it. I I remembered it. So US sourcing I think uh oil marketing companies had actually taken an initiative to source um LPG from US. We 1:08:37 1 hour, 8 minutes, 37 seconds had already done a contract for multiple caros which actually incidentally started from January. So every year 1:08:43 1 hour, 8 minutes, 43 seconds every month uh all the CC's are getting four caros between them and there are some optional caros. So that is flowing all this while to short to source short 1:08:52 1 hour, 8 minutes, 52 seconds term. I think the biggest challenge is two challenges exist. One, there isn't too much of surplus NPG capacity anywhere in the world. That is one. 1:09:01 1 hour, 9 minutes, 1 second Second, practically for US the distances are too long. It takes about 80 days for a ship to turn around from here to 1:09:08 1 hour, 9 minutes, 8 seconds there. The same thing for Middle East was 14 days. So it if I need 10 ships for Middle East, I would need 1:09:17 1 hour, 9 minutes, 17 seconds 16 for 40 ships for uh there. So all those things are practical difficulties on it. Having said that, our sourcing from US and LPG in this period has also 1:09:26 1 hour, 9 minutes, 26 seconds gone up. Lot more has started coming in May and now will come in June than in March itself because immediately obviously even if you had actioned it, it would have come immediately. 1:09:36 1 hour, 9 minutes, 36 seconds And the last one if you could just uh give us a perspective compared to Arab Gulf or uh Middle East the actual landed 1:09:45 1 hour, 9 minutes, 45 seconds cost of LPG from Middle East to India and US to India which one be better just for our understanding. 1:09:55 1 hour, 9 minutes, 55 seconds It is absolutely impossible to calculate this at this point of time because you get situations 1:10:02 1 hour, 10 minutes, 2 seconds all kinds of situation in the market from premiums to super premiums to okay 1:10:10 1 hour, 10 minutes, 10 seconds somebody absorbing caros uh freight prices somebody not absorbing. So right now if I have to do a comparison I do I 1:10:17 1 hour, 10 minutes, 17 seconds live on the comparison not on a systemic basis I live on the comparison on what's happening on the time of the day and the daily basis. um comparison because it's 1:10:26 1 hour, 10 minutes, 26 seconds um in a normal situation I would have given you those numbers and typically in the long run um US LPG was marginally 1:10:34 1 hour, 10 minutes, 34 seconds higher than what's long run landed in was marginally higher than what long-term CP long-term average on CPP 1:10:43 1 hour, 10 minutes, 43 seconds into India would have been but right now it is impossible to there are cargos which we suddenly find oh this is way cheaper than CPP coming in here see 1:10:50 1 hour, 10 minutes, 50 seconds remember the last 70 days has been one where the availability of the product has been very scarce. A lot of effort has been to just secure the pipelines. 1:10:59 1 hour, 10 minutes, 59 seconds Um secure the ships etc. Pricing is the later factor right now. So it's a very abnormal price to even do abnormal time to do the pricing comparisons. 1:11:09 1 hour, 11 minutes, 9 seconds Thanks a lot sir and wish you all the best. Thank you. 1:11:15 1 hour, 11 minutes, 15 seconds Thank you. We will take the next question from the line of Amit Muraka from Access Captain. Please go ahead. 1:11:23 1 hour, 11 minutes, 23 seconds Yeah. Hi. Uh good afternoon and thanks for the opportunity. Uh on the refining side, I just wanted to understand like 1:11:30 1 hour, 11 minutes, 30 seconds um given that u there is too much u volatility around the spreads which we see on the screen but also on the crude 1:11:38 1 hour, 11 minutes, 38 seconds sourcing as you said like lot more spot carbos been taken plus change in the slate itself. So I just wanted to get a 1:11:45 1 hour, 11 minutes, 45 seconds sense of like uh how should we look at refining margins like is it still fair to say that the margins that you're earning 1:11:53 1 hour, 11 minutes, 53 seconds like with all these constraints around more LPG production and all that is is much better than the pre-war situation. 1:11:59 1 hour, 11 minutes, 59 seconds If you could just help us understand that part. Yeah, I think uh see for an integrated company I've always held a 1:12:06 1 hour, 12 minutes, 6 seconds view though unless you always ask for JM that refinary margins frankly don't matter for me as an integrated company for what matters for me is the crude and 1:12:15 1 hour, 12 minutes, 15 seconds the selling price. But having said that since the question is specifically on uh refining margin I would say at the broadest level you can assume that uh if 1:12:24 1 hour, 12 minutes, 24 seconds it was the perfect environment in the same situation uh refineries could have produced 1:12:33 1 hour, 12 minutes, 33 seconds better. They would have been optimized better because none of the refineries you know had the perfect slates for the products which they wanted to generate. 1:12:41 1 hour, 12 minutes, 41 seconds Not only are we finding this you know for everybody else also because then people were running what they had available rather than what is most perfect for the slate which you're 1:12:49 1 hour, 12 minutes, 49 seconds looking so when you are running the less optimized run you're obviously leaving some 1:12:56 1 hour, 12 minutes, 56 seconds margins on the table so from that perspective you can expect refineries to perform strongly on that on LPG 1:13:04 1 hour, 13 minutes, 4 seconds conversion into this actually um very few refineries have been affected 1:13:11 1 hour, 13 minutes, 11 seconds from a value perspective as only if you're integrated then you are more affected if you are otherwise the 1:13:18 1 hour, 13 minutes, 18 seconds maximum you could anyway do it there is a limit to how much you can swing towards LPG and that is well within the operational parameters so um I think we 1:13:26 1 hour, 13 minutes, 26 seconds are too complex to just uh because that depends refinary to refinary but u um broadly I would say refineries could 1:13:34 1 hour, 13 minutes, 34 seconds have uh done better in the same environment with all the pricing etc if they had the operationally the best groups available. So to that extent from 1:13:43 1 hour, 13 minutes, 43 seconds my vantage point there's a bit of under statement in refinary performance in the recent numbers. 1:13:52 1 hour, 13 minutes, 52 seconds Sure. Uh understood. Uh but u but like uh when you uh if you could just add a bit more on that like when you let's say 1:14:00 1 hour, 14 minutes buy your products from from a refinery any other refinery in in the in the country uh there is also that export 1:14:08 1 hour, 14 minutes, 8 seconds debate which is in place. So is it getting adjusted in the procurement or or that's out of time but 1:14:21 1 hour, 14 minutes, 21 seconds yeah to the certain extent it is getting adjusted in the procurement price. 1:14:28 1 hour, 14 minutes, 28 seconds Sure. Sure. Got it. Thank you very much and best wishes. 1:14:35 1 hour, 14 minutes, 35 seconds Thank you. We will take the next question from the line of Kan Ma from Baroa BNP Paribas Mutual Fund. Please go ahead. 1:14:44 1 hour, 14 minutes, 44 seconds Thank you sir for the opportunity. 1:14:47 1 hour, 14 minutes, 47 seconds Couple of questions from my side. One on the supply of crude. 1:14:51 1 hour, 14 minutes, 51 seconds So for the you mentioned that we have started sort of procuring crude for July and for July with the return of European 1:14:59 1 hour, 14 minutes, 59 seconds refinery from maintenance and globally market short of the crude which has been lost. Do you see more challenges for 1:15:08 1 hour, 15 minutes, 8 seconds procurement of crude during July as compared to May or June? That was the first question. Second question was are 1:15:16 1 hour, 15 minutes, 16 seconds we also sort of seeing a lower diesel yield than which would have been otherwise because of the unavailability 1:15:23 1 hour, 15 minutes, 23 seconds of the medium heavy grade crude which have a higher diesel yield. So is that 1:15:30 1 hour, 15 minutes, 30 seconds also sort of making us impact our crude sled at this point of time and would that delay basically the benefit that we see out of the RUF unit? 1:15:41 1 hour, 15 minutes, 41 seconds Oh, I think uh good questions. Uh on the availability from Europe, I don't see uh any challenge uh on that because we are 1:15:49 1 hour, 15 minutes, 49 seconds in the market and if I'm not mistaken, we have secured half of July already. Uh we as I said earlier, we typically buy on a 60-day uh uh cycle. So I think till 1:15:58 1 hour, 15 minutes, 58 seconds about 15th July, we have covered ourselves uh the normal procedure and we have not had any difficulty in getting the uh groups which we uh want. Of 1:16:07 1 hour, 16 minutes, 7 seconds course, I would wish they were coming to me $50 cheaper than what they are coming. That's a different um aspect on your question on raft etc. If definitely 1:16:15 1 hour, 16 minutes, 15 seconds if I don't get the right crew which goes in for that, I cannot run that complex unit on the most uh optimum thing. So it impacts I will not shy away from saying 1:16:24 1 hour, 16 minutes, 24 seconds those it definitely impacts you when you don't get it. And as I said earlier in the response to previous question, it impacts everyone in the cycle. I can bet 1:16:33 1 hour, 16 minutes, 33 seconds no refinery in India was running on the optimum slate because they did not have the optimum crews. They did not have the optimum mixes. Given the challenges 1:16:41 1 hour, 16 minutes, 41 seconds which we had um I'll be very honest a lot of our uh rough if I the best group to run is some of the question groups but if they are not available I have to 1:16:50 1 hour, 16 minutes, 50 seconds run on the second best where some parameters definitely go down. So it impacts and in an ideal situation the 1:16:57 1 hour, 16 minutes, 57 seconds same assets as I said in response to previous question would give us more returns. That's why I said broadly the refinary performance is understated in this uh quarter. 1:17:08 1 hour, 17 minutes, 8 seconds Sure. Can I also squeeze in one more follow up on the previous participant question? Okay. 1:17:14 1 hour, 17 minutes, 14 seconds In terms of the what we mentioned earlier is that we have been incorporating some amount of discounts while we purchase crude from the other refiners on the line of export duty. 1:17:26 1 hour, 17 minutes, 26 seconds This round the revisions on the export duty has not been very frequent and periodic. So are our adjustments run in 1:17:32 1 hour, 17 minutes, 32 seconds line with the export duty or are we sort of adjusting more frequently keeping in view the volatility and is the target 1:17:40 1 hour, 17 minutes, 40 seconds crack around 20 $22 on diesel and ATF at this point of time procurement right or the RTPs are 1:17:49 1 hour, 17 minutes, 49 seconds adjusted for in line with the declared SAE which is done and that's for the exercise. 1:17:58 1 hour, 17 minutes, 58 seconds Yeah. Yeah. 1:18:01 1 hour, 18 minutes, 1 second It has not been announced at least to the media in fortnightly business. So is it happening on a fortnightly basis? 1:18:09 1 hour, 18 minutes, 9 seconds It is happening as and when the government declares the SAT. 1:18:14 1 hour, 18 minutes, 14 seconds Okay. And is the underlying target crack around $20 for diesel and ATF at this point of time? 1:18:21 1 hour, 18 minutes, 21 seconds Government would be able to clarify. Sure sir. Thank you. 1:18:28 1 hour, 18 minutes, 28 seconds Thank you. Then we take the next question from the line of Dash J Chan from CSU. Please go ahead. 1:18:38 1 hour, 18 minutes, 38 seconds All right. Thanks for taking my questions. But before I ask my questions, firstly want to thank Rajes G for all the help over the last few 1:18:45 1 hour, 18 minutes, 45 seconds years. Uh and uh you know uh of course congratulations on a great stint and all the best uh for your future endeavors. 1:18:55 1 hour, 18 minutes, 55 seconds uh and with that I will of course start with an accounting question given that it's reg it's uh you know uh super 1:19:02 1 hour, 19 minutes, 2 seconds annoating uh depreciation that I see has gone up can you confirm when uh is is a 1:19:10 1 hour, 19 minutes, 10 seconds large part of the standalone linked capitalization already done or and when was it done I 1:19:17 1 hour, 19 minutes, 17 seconds mean what would the number look like say in FI27 when for the full 1:19:25 1 hour, 19 minutes, 25 seconds See part of the depreciation has gone up because during this year uh we have capitalized the rough unit. Yeah, that 1:19:34 1 hour, 19 minutes, 34 seconds has happened in the last quarter primarily uh the full last year quarter plus there is an impairment testing 1:19:41 1 hour, 19 minutes, 41 seconds which has been done for some of our assets. So there is an element of impairment also included in the uh 1:19:50 1 hour, 19 minutes, 50 seconds how much would that uh amount be the impairment part that is around 400 400 450 cr. 1:19:58 1 hour, 19 minutes, 58 seconds Okay. And uh so would uh is there any other pending capitalization left or almost all of the rough has been capitalized now? 1:20:09 1 hour, 20 minutes, 9 seconds No, it has been capitalized. 1:20:11 1 hour, 20 minutes, 11 seconds Okay. So uh can I say that that 2400 minus 400 crores about 2,000 crores 1:20:18 1 hour, 20 minutes, 18 seconds would be the going run rate or was it capitalized during the quarter and not the full quarter? 1:20:24 1 hour, 20 minutes, 24 seconds No no it took the full quarter. Yeah the appreciation was for January 30. Yeah. 1:20:32 1 hour, 20 minutes, 32 seconds Okay. 1:20:33 1 hour, 20 minutes, 33 seconds Okay. Okay. Sure sir. uh and uh just uh uh on the LPG part roughly 1:20:41 1 hour, 20 minutes, 41 seconds what is the kind of uh you know uh LPG loss that we that we saw for the month of April I mean percent loss that we 1:20:49 1 hour, 20 minutes, 49 seconds were running for the month of April like you had 1:20:56 1 hour, 20 minutes, 56 seconds 170 170% in April 6th 1:21:04 1 hour, 21 minutes, 4 seconds 170 April and 670 higher 170 per cylinder. What the numbers? Sorry. 170 Vicas, you said 170 in April. 1:21:13 1 hour, 21 minutes, 13 seconds 170 per cylinder. Yeah. 1:21:17 1 hour, 21 minutes, 17 seconds 170 per cylinder in April and 670 in May. 1:21:24 1 hour, 21 minutes, 24 seconds 670. Yes, sir. Yes. 1:21:28 1 hour, 21 minutes, 28 seconds Okay. And this number compares to roughly about 84 rupees in 4Q. Is that right? 1:21:36 1 hour, 21 minutes, 36 seconds Yeah. Yeah. Maybe approximately. Yeah. Yeah. Okay. Okay. Uh thank you so much. 1:21:43 1 hour, 21 minutes, 43 seconds Otherwise, I think Vicas, your opening remark was uh good enough to answer most of the PMTF questions. So, thanks a lot. 1:21:50 1 hour, 21 minutes, 50 seconds Thank you. 1:21:53 1 hour, 21 minutes, 53 seconds Thank you. We will take the next question from the line of Sabriika from M Globe. Please go ahead. 1:22:01 1 hour, 22 minutes, 1 second Yeah, just two questions. Certly this already has been asked. So, so with the SE our integrated markets could be 1:22:10 1 hour, 22 minutes, 10 seconds similar to the other also who has a higher refining to marketing uh mix. Is that right? 1:22:18 1 hour, 22 minutes, 18 seconds Can can you repeat your question please? 1:22:20 1 hour, 22 minutes, 20 seconds I mean uh our refining to marketing ratio was lower than other other oil marketing companies but the now takes 1:22:28 1 hour, 22 minutes, 28 seconds care of it right that the integrated margin of of the three companies would be similar right now. No see it would 1:22:35 1 hour, 22 minutes, 35 seconds depend on the individual refineries as to what state they are having and what what what rate they have bought the crude fuel and loss and there are 1:22:43 1 hour, 22 minutes, 43 seconds various host of other activities apart from the SA right but but the but the disadvantage 1:22:51 1 hour, 22 minutes, 51 seconds which HQL had in procuring um products from other refiners on a very high crack 1:22:57 1 hour, 22 minutes, 57 seconds environment that gets sorted not fully but partially to an extent I think what you are saying is right 1:23:07 1 hour, 23 minutes, 7 seconds I still don't get the margin on that defining margin on that and plus we don't know at what level the SA has been fixed 1:23:16 1 hour, 23 minutes, 16 seconds right and uh and second is a bookkeeping question so what was the uh GRM aipa and 1:23:23 1 hour, 23 minutes, 23 seconds for HML uh in Q4 and FY26 as a whole 1:23:33 1 hour, 23 minutes, 33 seconds is the GRM for uh Q4 was around $17 per barrel. 1:23:46 1 hour, 23 minutes, 46 seconds Okay. And EITA and uh EITA for full year was around 6,800 C 1:23:54 1 hour, 23 minutes, 54 seconds and for the Q4 was 3,300. Excuse me. 1:24:01 1 hour, 24 minutes, 1 second 3,300 K 3,300 K positive for for the year 1:24:10 1 hour, 24 minutes, 10 seconds positive for fine. Um yeah, thank you so much and I'd like to wish Nar G and all the best for 1:24:19 1 hour, 24 minutes, 19 seconds his future end. Thank you so much and all the Thank you. 1:24:25 1 hour, 24 minutes, 25 seconds Thank you very much ladies and gentlemen. We will take that as a last question and with that concludes the question and answer session. I now hand 1:24:34 1 hour, 24 minutes, 34 seconds the conference to Mr. Vartar Rajin for the closing comments. Thank you and over to you sir. 1:24:40 1 hour, 24 minutes, 40 seconds Thanks. Uh I again would like to take this opportunity to express my sincere thanks to Mr. Rajus Naran for his 1:24:48 1 hour, 24 minutes, 48 seconds extended outreach to the investor community as well as all the support he has been giving to all the uh analysts and the investors all through these 1:24:55 1 hour, 24 minutes, 55 seconds years. It was a great effort and it it is a heartfelt thanks to from our side and also congratulate him for his uh 1:25:04 1 hour, 25 minutes, 4 seconds future endeavors. Uh I'd like to hand over the floor uh to the CMD for his closing remarks. 1:25:11 1 hour, 25 minutes, 11 seconds Thank you. It's been almost one and a half hours you've been on this call. So I won't take people back further. Uh all I want to say is uh the team HDL is very 1:25:20 1 hour, 25 minutes, 20 seconds committed uh very excited with the momentum we have built. I'm uh of course uh fighting hard to meet the current 1:25:29 1 hour, 25 minutes, 29 seconds challenges but also equally very hungry to create uh further things. So we have sat as a leadership group immediately 1:25:36 1 hour, 25 minutes, 36 seconds after the results and u we're starting to do the projection which is the next time when how soon can we beat these numbers. So uh hopefully u you will see 1:25:46 1 hour, 25 minutes, 46 seconds great momentum ahead uh and hopefully these times uh would pass till that time uh I would say uh stay um happy and 1:25:56 1 hour, 25 minutes, 56 seconds healthy and uh keep focusing us those of you write reports on us please share them we'd love to hear your views and also learn from what we think uh what 1:26:04 1 hour, 26 minutes, 4 seconds you think we are not doing well uh and again we'll connect in 3 months from now thank you and those of you wish to meet us we are more than happy to have 1:26:12 1 hour, 26 minutes, 12 seconds secretary dialogue in smaller groups or individually. Thank you and all the best. 1:26:17 1 hour, 26 minutes, 17 seconds Thank you members of the management. On behalf of Antix Broken Limited, we conclude this conference. Thank you all for joining with us today and we may now 1:26:26 1 hour, 26 minutes, 26 seconds disconnect your lines. Thank you. Thank you.