C P C L

CPCL demonstrated stellar operational performance in FY25, achieving a crude throughput of 10.45 MMT, representing 99.5% of installed capacity, and 113% in Q4 FY25 (2.974 MMT). The company recorded its lowest ever Energy Intensity Index (EII) of 87.4 and reduced its fuel and loss index to 8.51% for the year, reflecting optimized energy utilization. RLNG consumption also increased to 527 TMT in FY25 from 441 TMT in FY24, contributing to both profitability and environmental sustainability. The company maintained an impressive safety record with 1884 fire-free days as of March 31, 2025.

While CPCL achieved a premium GRM over the Singapore benchmark ($6.22/bbl vs $3.1/bbl in Q4 FY25), the overall GRM for FY25 stood at $4.22/bbl, a significant reduction from $8.64/bbl in FY24. This decline was primarily attributed to the compression of international product cracks, which fell from $13-15/bbl to sub-$10/bbl for products like HSD. Inventory gains were minimal at $0.66/bbl (Rs. 125 crores) in Q4, with an annual inventory loss of $0.06/bbl (Rs. 40 crores). The company processed approximately 64-65% high sulfur crude, optimizing sourcing based on economics.

CPCL introduced pharma-grade hexane during the year, expanding its value-added product portfolio and market reach. The company also conducted a trial run for Sustainable Aviation Fuel (SAF), positioning itself for an early role in its potential rollout. Management highlighted a focus on increasing MS production to capitalize on the existing shortfall of approximately 20 TMT per month in the southern market, aiming to improve margins. The LOBS (Lube Oil Based Stock) project, aimed at upgrading NAPHTHA and HSD to Group-II and III, is at an advanced approval stage and is expected to be highly profitable.

The proposed Cauvery Basin Refinery project has a revised capital cost of Rs. 36,354 crores, with an equity structure of 25:75 between CPCL and Indian Oil Corporation. Land acquisition for the 1200-acre project is complete, and the company is awaiting CCEA approval, expected within a few months. The new refinery is designed with a 6% petrochemical index, primarily for polypropylene production. The JV will have a separate debt-equity structure, currently planned at 2:1.

CPCL's debt-equity ratio stood at 0.39 as of March 31, 2025, with absolute debt at Rs. 3,100 crores, reflecting a slight increase from 0.32 and Rs. 2,762 crores respectively in the previous year. The company spent Rs. 673 crores on CAPEX in FY25. For FY26, maintenance CAPEX is projected to be in the Rs. 200-250 crore range, with an additional Rs. 400-500 crores annually for value-added projects like the LOBS project, bringing total annual CAPEX to Rs. 700-800 crores. The Board recommended a dividend of Rs. 5 per equity share (50% of face value).

CPCL achieved an upgrade from Schedule-B to Schedule-A Central Public Sector Enterprise, which is expected to strengthen management and expedite decision-making towards achieving Navaratna status. The company successfully implemented and certified its Information Security Management System (ISMS) to ISO 27001:2022, enhancing system security. CPCL also achieved an S&P Global ESG score of 46 for 2024, surpassing the Indian average, demonstrating its commitment to transparency and sustainability.