Hindustan Petroleum Corporation Limited analyst Q&A

The first question is from the line of Probal Sen from ICICI Securities.

Just sorry to harp on the refining front again. In terms of this quarter performance, you did mention that the opportunity crude, which I believe I think you're referring to the Russian crude component, while -- the volume may not have reduced, but the discount has come down. Is it fair to say that, that was the major reason, sir, for the Q-o-Q decline at least that we see? Because if I look at Singapore benchmarks, the Singapore benchmark actually went up. And I appreciate that the products slate is slightly different between Singapore and ours slate. But broadly speaking, the benchmark still went up. So can we attribute the decline Q -o-Q to primarily the crude cost differential in this quarter?

See, if you look at the Singapore GRM, Singapore GRM in the last quarter of last year were around USD 8 a barrel, whereas in the current year, it's USD 7 a barrel. So it has actually come down only. But yes, you are right that only the Singapore GRMs are -- is not the only factor, but the Russian crude discount also is a significant element into the reason as to why the GRMs are lower. And the third part, what our Chairman has also covered in his address is rega rding the ISD buildup. We had an ISD, that is intermediate stocks. Now what happens is the intermediate stocks are valued at cost plus the weighted average operating cost -- 50% weighted average operating cost, whereas once we turn it into the final produc t, it gets valued at the RTP that is the refined transfer prices. So while the buildup was there, we could not get the value in our books during the period end, but the same has been converted into products in the current financial year. So that will get reflected in the current quarter.

The second question was with respect to, sir, capex plans and just result in terms of -- you mentioned that there was commissioning of some units or some parts of the Vizag refinery expansion, while the bottom of upgradation facility will happen in this financial year. Can you just explain in terms of when the total expanded capacity will be available at Vizag?

Yes. Not actually Vizag refinery as mentioned that all the units have been commissioned except the bottom upgradation. Bottom upgradation, right now, we are in the process of mechanical commissioning. And we expect that in the third quarter of this financial year, we should be able to derive all the benefit out of that. The expansion would have -- right now, we have 13.7 MMT at Vizag with rough commissioning it will become 15. So as I said in my introduction that after commissioning of bottom upgradation units, we have will twin advantages. One would be in terms of margins and second would be in terms of enhanced capacity of about 1.3 metric million tons. And we expect this to stabilize by the third quarter of this financial year.

Understood. Sir, last question if I may any guidance segment-wise, division of capex for FY '25 and '26, if you can?

Yes. The current year we are planning a capex of around INR18,000 crores.

Sir, can you break it up into how much into in refining, how much into CGD the Rajasthan Refinery equity share and so on?

One minute. Just hang on we will give you that details. I n refining it will be around INR 5,000 crores. Marketing would be around INR 6,500 odd crores. Corpora te level, it will be around INR800 crores plus INR5,600 crores is the equity contributions which we'll be making to various our JVs and come into this green...

Equity contribution would be INR5,600 crores?

Yes. This includes the equity contribution for our new wholly -owned subsidiary for green initiatives.

As well as for Rajasthan?

Yes.

Thank you so much. I will come back if I have any question. Thanks for your time.

Thank you. We 'll take the next question from the line of Sabri Hazarika from Emkay Global. Please go ahead.

So just one question. So given that I think for the next like 5 months, 6 months or so there could be some sort of stabilization which should still be going on because I think in Vizag, I think the bottoms upgrade, hookup will also probably like have some impact on the existing operations. So do you see that the GRM underperformance versus, say, your peers could continue for a couple of quarters or because of this intermediate product adjustment, do you think that there could be a sharp recovery?

As you rightly said, there would recovery, number one. Second is, for Vizag, our major units are already stabilized. So we don't expect that upset on those major units. That is our CBU4 and the associated unit that FC-HCU all these are stabilized. And when we do the hookup with bottom upgradation we are not expecting any upset. In fact, one of the indicators which I had mentioned that our fuel loss performance has been better. That is because Vizag refinery, the CBU4 which is there, it is the top quartile in terms of energy utilization and things like that. And I would just request our Director Refinery also to add a few lines on this, Mr. S. Bharathan.

Under the Vizag refinery whatever units we have commissioned has the best energy efficiency measures built in. So all that are already in place and reaping the benefits. And with respect to capacities of the units what we have started all are running at the maximum capacity and stable. As our Chairman told, the bottom upgradation project will get commissioned in the third quarter. And then we will get the benefits of the higher bottoms upgradation also.

Okay. Got it. So just this bottom upgradation, you gave some gu idance of like USD2 to USD 3 of like GRM addition from that on absolute terms. So does it -- that holds or has there been any change on that?

Yes with it holds. I will only just answer the question which was earlier asked, how will the GRMs co mpare with respect to the peers? So till the time the bottom upgradation is not commissioned to the extent of the impact due to non upgradation of the bottoms that GRMs would be lower. But once the RU F or the receipt upgradations, residue upgradation unit is installed then it would be at par if not better than the other peers.

Right, sir. And your 5-year plan is from '22 to '27, right? or was it '23 to '28?

No, the current 2025 plan is going and we have already crossed the third year. That is up to FY '25-'26. And next plan that is for '31 we will call it Target '31. That is already in place and now we will be laying down steps for executing that.

Got it. Thank you so much and all the best.

So first question is on the current quarter GRM. What would be the inventory impact here on the refining and the marketing side? And also, if you could quantify anything on the intermediate stock impact on GRM in the current quarter?

Sure. As regards to the inventory during this quarter, it's -- it's a gain of almost around INR350 crores. And on the marketing front it is around a loss of INR600 crores. And ISD impact is around USD1.5 a barrel.

And this USD1.5 a barrel impact. So that's the total impact of integrated stock so far or we have had something for the entire FY '24 apart from last quarter?

No, I'm talking about the accumulation part, the incremental accumulation.

Got it, sir. Second question is on your capex plan. So this year, you did mention INR 18,000 crores. So how do you see next 2 years to 3 years? Is it a similar run rate and what would be the projects that we'll be focusing on?

Yes, yes. The capex would be in this range only between INR15,000 crores to INR18,000 crores. As regards, the areas where we would be focusing apart from our refinery and marketing units would be the green energy initiatives. We have plans to build up a portfolio of green energies, both i n solar then wind hybrid plus biofuel plants and various other opportunities which are coming in terms of CBG plants and all. So a lot of projects we have lined up, signed up...

And if I may just add, in terms of our refinery, we had mentioned that we have done both capacity expansion and the quality improvement. Now in the next 5 years bucket, we also have plans to have LOBS in our Mumbai refinery that would be enhancing our play in the lubes domain. And we would be making Group 3 lubricants and all that. So that is also a portion of our capex plan that is in our Mumbai refinery. Similarly, in marketing, we would be expanding our retail network, which is about 22,000 plus now in terms of retail outlets. Similarly in new LPG plants and pipeline projects are there. That is what is the capex plans for the next 5 years.

And we don't intend add on to the loans and we're funding most o f the projects out internal generations.

Got it. sir. One last question. I mean -- HMEL performance for the quarter and also the debt level...

See, during the entire year or you want only the quarter? In the quarter, HMEL had a loss, and that loss was primarily because of -- they had -- you are aware that during the current year, they had commissioned the petchem facility, and the facility now from January onwards, has started operating at around 95% to 100% capacity. Because of the very subdued polymer margins and all, they had a loss and that primarily is the reason why the last quarter performance of HMEL was not up to the mark. But yes, in the month of April, the polymer margins have started looking and at least it's not negative in the month of April. And if you see for the entire year, they have made almost INR1,800 crores to INR1,900 crores during the year.

And debt number, sir...

Pardon. Yes, the debt -- net debt is around INR34,000 crores.

The next question is from the line of Bhavik Shah from MK Ventures.

Sir, my first question is on the Barmer Refinery. Sir, what kind of ROC Es are we expecting to generate at that plant? And when can we see it getting commissioned?

Can you just repeat the question, please?

Sir, what kind of ROCE you expect to generate from the Barmer Refinery plant? And by when can we see it getting commissioned?

See, in his -- Chairman has addressed and stated that as regard the refinery part is concerned, that would -- we will be -- we are targeting to commission by end of this calendar year. And that is the refinery part, after that the petchem unit would get commissioned. And as regard the return is concerned, this project has been envisaged with an IRR return of more than 12%.

Pardon.

More than 12%.

Okay. More than 12%. Regarding your lubricant business...

On the revised cost -- post revised cost, sorry.

Sorry, sorry, go ahead, sir.

More than 12% IRR on the post revised cost.

Okay, sir. And sir, on the lubricant business, sir, can you give us some insights like what is the current capacity? What kind of volumes you do there? What kind of margins do you make here?

See, we sell almost around 600 to 650 TMT of this product. And as regard margins are concerned, we have a fairly good margins. We cannot be setting more than that because this is a very competitive product.

Okay. And sir, do what kind of utilization levels do we run there, the capacity utilization levels?

Utilization, primarily they evacuate fully our lube refinery base oil. So that is one part which 100% of the production, which is in our lube refinery is catered by -- taken care of by the lube lubricant business. In addition to that, we have some blending plants and most of the blending plants -- the major blending plants operate at more than 90% capacity.

So we are planning any capex on this part because we didn't see an breakup of capex here? We are not doing any capex here?

Yes, we have a plan to set up a new manufacturing plant in -- that is there.

Okay. And sir, what will be the capacity which you are planning to add?

Manufacturing. We are currently producing close to 450,000 tons in our Mumbai r efinery. It will be increased to almost 800,000 tons, which will be focusing on Group 3 and Group 2 Plus. So the quality also will be improved and quantity also will be close to double.

This is in for the next 1 or 2 years, you can see it getting commissioned?

Maybe in the next 3 years.

Okay, next 3 years. Okay, sir.

The next question is from the line of [Sumeet R. from AUS Capital 29:40].

Sir, firstly, many congratulations on achieving a fantastic performance for the full year. Sir, now I just had a few questions. If you can just help understand. Your press release says that there are certain draft recommendations, including value creation initiatives and further requisite steps which you have initiated on the lubricant part. So sir, can you please talk a little bit about the lubricant business today. What is our market share? Secondly, sir, what are the value creation steps that we are taking? And also a little bit on the time lines of when do you actually think all these things should be in place?

Yes. Thanks, Sumeet. Thank you very much. And as I mentioned, there are three facets of this lube play, which we have said: one is enhancing our operational efficiency right away. Second would be unbundling of our assets which are there. And third would be the requisite processes which are required for taking approvals from various competent authorities. On all these three fronts, we have as -- we have initiated the steps on all these three fronts. And in fact, we are expecting that in a reasonably defined time, we should be first able to leverage on whatever improvement in the market share improvement in the operational excellence is required, that would happen forthright, immediately. Second, parallelly, which we have said is that is about statutory approvals and all that, that process. And third is unbundling of our assets, which you understand that we have lubricant refinery at Mu mbai, and we are further expanding that refinery. After that, we have lubricant plants across the country, which do the filling, manufacturing in grease and things like that. So that is happening. So all this process, I would say, is on fast track. I'm afraid I'm not able to -- I won't be able to give you the exact month or date right now because these processes are going on and on a fast -track basis As far as our market share is concerned, Rajneesh, I would expect you to give the response.

Among the -- all the 3 OMCs, we are the market leader. We have almost 36% to 37% of the market share.

Okay. That's helpful. Okay. Sir, I'm sorry, just one more question, if I may ask. Is that on the market inventory side, I mean, did I pick up correctly that we suffered about a INR600 crore inventory loss for this quarter? Is that correct?

Yes. You are right.

That is correct? Okay -- I'm sorry?

That is in the marketing front. In the refinery, we had a gain of INR250 crores.

Thank you. The next question is from the line of Amit Murarka from Axis Capital. Please go ahead.

On HMEL, could you please share what was the GRM that was done in FY '24? And also could you share the financials for '24?

Sure, Amit. Yes. The GRM during the last year was around $17 to $18 a tonne.

Okay. And what was the EBITDA and PAT loss?

The PAT is around INR1,800 crores to INR1,900 crores and EBITDA is around INR7500 crores.

Right. But how much of this loss was for PETCHEM? Like, I believe refining would have made a positive PAT?

I don't have those details readily available. I will share it separately.

Okay, s ure. And also could provide an update on the Chhara terminal, what is the volume handled in FY '24?

See, the Chhara terminal was to be commissioned. In fact, in the month of April, we had got the commissioning cargo also -- and the vessel had arrived. But however, due to certain challenges because of the rough sea and all, we couldn't unload the cargo and the full commission the terminal. That we'd be doing into the next phase, fair weather season, beginning October onwards. So as regards to the Chhara is concerned, we are not selling any gas out of Chhara right now. And the same would happen in the current financial year after October.

Okay. But could you just elaborate a bit more at what was the issue? And how you resolved the issue now?

It's suffice to say that this was not because of any mechanical or infrastructure issue at our Chhara because all those facilities are completed. This was primarily due to the weather. And si nce it was a commissioning cargo, all the necessary actions were taken for that. But as our Director of Finance has mentioned, because of the rough sea and the swell beyond the permitted limit, we were not able to unload the cargo.

Understood. And could you also do highlight what is the Regas tariff plan at Chhara?

It is as good as what is there in [BIH 36:23].

Thank you. The next question is from the line of Kirtan Mehta from BOB Capital Markets. Please go ahead.

In terms of the -- would you be able to sort of separate out the GRM for Vizag? Indicate what was the Q3 GRM? And then how did it improve during Q2?

Normally, we don't -- we calculate it on HPCL entirely focused.

Because we've gone through a major change, it would be good for us to understand how it's improving from here to the bottom that will be the great.

Once we have commissioned the RUF unit, we'll be sharing it.

Second question is about the HMEL refinery, where we have plans for natural gas intake. Has that started already?

Yes. They are taking natural gas.

Would you be able to indicate the quantum that you're using there?

We don't have the data readily available. We'll get back to you, Kirtan. We'll get back to you.

Last question was on Chhara LNG terminal. So have we identified we signed the contracts with customers as well?

See, we have floated an EOI, and we've got some encouraging response. So we are already in discussion with various potential buyers who are interested in booking capacity. But right now, HPCL has already booked some capacity in Chhara terminal because HP LNG is a separate company -- it's a wholly-owned subsidiary. Right now, we have booked the capacity concerning our requirements for our refineries plus the -- our marketing requirements. And the discussions with the potential buyers is in quite an advanced stage.

What is the reasonable throughput that can be achieved at Chhara Energy over the next 2 years or so?

Thank you. We'll take the next question from the line of S. Ramesh from Nirmal Bang Equities. Please go ahead.

Congratulations on a good results in your opening remarks. So if the branch accounts presented in your notes, Vizag accounted for about INR329 crores, that's about 8% of your overall profits. So once your rough unit is ready and you get the benefit of the bottom upgradation. Roughly, what is the kind of profit number you can expect from branch accounting as anyway you've disclosed it. So will it increase in terms of the overall share of your profit here to 15%. But right now, I'm just talking about whatever you disclosed on the fourth quarter, how would that move?

Yes. Ramesh, as I mentioned in my introductory address also that post rough commissioning on both counts, in terms of margins as well as in terms of our additio nal capacity of about 1.3 million tons, there would definitely be a positive improvement. And as Director of Finance has earlier mentioned that we are expecting about between $2 to $3 improvement on the total year end, not only on additional but on the total GRMs. So this would roughly be in the range of, let's say, 10% to 15%.

Overall profits?

Yes.

So in terms of the operating cost, will it remain same? Because how much of that incremental delta in GRM will you retain in the EBITDA level, can I ask?

See, as far as operating cost is concerned, now what happens is, as I mentioned, we have already commissioned our VRMP units that is our CDU, FCHCU and all those things. So there except maybe the opex, which is connected with the product and which is connected with additional -- there is no increase on account of raw , because that is already factored in. There will not be much impact on that.

Okay. That's helpful. So next two questions on Chhara Termin al and the CGD business. So is there any operating loss in Chhara, which you have booked? And how much of the Chhara investment have you already capitalized or still in work in progress? And when do you expect to have the commercial impact of Chhara in your P&L?

Ramesh, as we mentioned, we have not yet -- we could not unload that, the cargo, the commissioning cargo which has come. So therefore, this issue of what has been the operating loss, it will not be that materially relevant. And what we -- as we've mentioned that since the facilities are ready and we are expecting in the next fair weather season that is post this monsoon, sometime in September end and October, we would be able to take the commissioning cargo and thereafter, the thing would be commissioned because the pipeline connection is already there from evacuation from Chhara to the gas grid. That pipeline has been completed. As far as our internal mechanical facilities are there, they've been commissioned. And as far as both facilities are concerned, we have got the ship to shore compatibility study done and that is also completed. Okay?

So in terms of the commercial operation, has it started now in terms of the commoditization of the asset or will you start it only in October? Because there will be depreciation impact in the first half. That's why I'm asking that.

Yes. We'll be commissioning it only after we get the cargo inside.

Okay. Now on the CGD business, can you let us know how much is the capex done so far in your stand-alone CGD? What is the capex you expect in the next 2, 3 years? And what is the kind of volume you're doing now and how much would that increase over the next 2, 3 years in the stand-alone CGDs, not counting whatever you're distributing in your HPCL retail outlets, on the stand-alone CGD piece?

On a stand -alone basis, we are doing nearly around INR1,200 crores to INR1,500 crores of investment roughly. And this will gradually increase as we get into new GAs and all. Right now, on an overall basis, we -- if you see the total natural gas, we are already doing around 0.4 million metric tonne of sales.

Sir, how many CNG stations would you have in your new CGD outlets?

Total CNG stations, you are talking about in our GAs or total?

Your GAs, sir?

In our GAs. The total CNG stations is around 1,690. And if we have to see only our GAs, then it is around 328.

328. And the last thought, when do you think you will start generating EBITDA from these GAs and when do you expect that to be visible in your P&L by '26, '27? Can you give us some indication?

See, even right now, we have been selling, like see all 328 stations, CNG stations and all, they are selling the product. So we are already getting revenues. But yes, once the initial eight-year period is over, whereby we'll be commissioning more such units and all. See, when the c urrent year, the EBITDA contribution is positive from the year which we have. But once the project phase is over, it will significantly increase.

Next question is from the line of Shubham Shukla from Voyager Capital.

Sir, I just wanted to ask a few questions about your imports. How much is Russian oil in total we have imported this year?

We have imported about 30% to 40% out of our total imports.

No. All these are spot based. We have no term contract on Russian crude.

Okay. And do we have any like spread in discounts available to us compared to the benchmark?

I think it would be difficult to quantify because even the benchmark is hypothetical. And what is coming in, because all I could say is that we are taking this on DAP basis, delivered at port in my facilities. Of that -- if you take that, you have to also factor in the freight and things like that freight insurance associated. So my discounts are finalized on DAP basis. So therefore, there's no actually a common denominator to compare the various discount levels which are available. Second, this is also a sensitive -- commercially sensitive information.

I can only say that before buying any crude, whether it is the Russian crude or any crude, we go through a process. We economically analyze what is the value which it creates in the system. So the crude which gives us the maximum benefit in our system, considering our configuration, refinery configuration and all, that is only bought. So at whatever price we get it, on ly when it makes some positive impact in our book, we buy that.

Okay. And just one more question on your LNG terminal Chhara, if I'm pronouncing it right, you are looking to sell some stakes or like holding for Chhara?

As of now, we are more focused on commissioning the terminal and booking capacity in the same - as and when if any such opportunity comes or there are people who are interested, we will review. As of now, we haven't - we're not looking for any...

Thank you. The next question is from the line of Mayank Maheshwari from Morgan Stanley. Please go ahead. Mayank Maheshwari Hi Sir. Thank you for doing the call. My first question was a bit around your press release, which you talked about generative AI and how you want to use these tools in terms of the performance. So can you just give us a bit of an idea around what you're trying to do there?

Yes, Mayank. See, in this digital and AI/ML, w e have to separate things because digital, while we have mentioned that we have done the latest ERP implementation and things like that. As far as AI/ML is concerned, we are doing video analytics as far as our retail outlets are concerned to study the consumer behavior, to have a closer connect, that is we are doing video analytics there. In our pipelines, we are doing using AI for basically the pipeline security, the pipeline integrity system. Third, in our refineries, creating digital twins of the refinery assets which we are doing. And apart from that, in our R&D center also, we are focusing and we are trying to work out on a separate digital lab. In our finance department, we are using AI. We are also using in terms of demand forecast, and that has been a success story as far as demand forecast where we have used AI, we have come pretty close to whatever is the actual sales versus what demand forecasting which we have done. We are also doing what is called robotic processing workers or electronic worker s in our activities, which are transactional in nature. So we have implemented this in our finance department. Apart from this, also, there are some tie-ups with the start-ups in this facet in terms of video analytics, in terms of our pipeline security system, in terms of refining. So these are the broad baskets. These are the broad areas where we are working, Mayank.

Thank you sir. Sir, the participant has left the queue. We will move on to the next question, which is from the line of Yogesh Patil from Dolat Capital. Please go ahead.

Thanks for taking my question sir. My question is related to crude sourcing details. From third quarter FY '24, you started providing a detailed crude sourcing, like how much you are buying from ONGC, h ow much is the long -term contracts and the spot purchases? And if possible, Venezuelan crude share and overall? And going forward, do we expect that share of store crude or Russian crude will increase? If you could share some details on that side?

I'm not sure what the breakup you are referring. But as far as Venezuelan crude is concerned, we are not - because that is not suitable for our refineries. So , we are not buying, and we don't intend to buy that. As far as Russian crude is concerned, a s our Director Refineries mentioned some time ago, that about 30% -40% of the imported crude is this Russian crude. But the basic parameter is that for any crude which is available, whether it's on spot or on term basis, we do the GPW and the net realization, cargo realization of the crude and do that analysis. That is what I can share with you.

Sir, in last quarter, if I remember correctly, you generally purchase close to 3.5 MMT kind of ONGC crude, then long-term purchases are close to 40% -45%. Is that share has changed - any changes in that side?

Broadly, that remains the same - broadly because, yes, over past few years, the share of spot crude has got enhanced and consequently, the share of the term crude comes down.

Okay. And sir, if you could share the lubricant business contribution to HPCL's EBITDA on an annual basis? That would be helpful.

If you see in terms of volumes, we are around 650 TMT-700TMT that is around -- even if you take 0.7, but the total volume which we sell is around 47 Million Metric Tonnes. So, although it doesn't even constitute - it constitute a very small portion of the volume. But in terms of EBITDA and all, I can only say that it is significantly – it will be multiples of the percentage of volume.

So amount will be closer to INR1,000 crores or less than that?

It's around that number.

Okay, thank you very much sir and wish you best day.

Thank you. The Next question is from the line of Roshni Devi from Argus Group. Please go ahead.

Hello?

Hi, sir. Just wanted a clarification regarding the pipeline of Chhara LNG terminal. Is it complete?

Yes. Roshni. That is completed. And in fact, from Chhara, there is a place called Gundala, that is about 42 kilometers from Chhara. That pipeline has been commissioned. From Gundala onwards, it is already connected to the GSPL national grid. And the pipeline has been hydro tested and it is ready for taking the product.

Okay. Sir, one last question regarding your Vizag bottom upgradation unit. Which crude grades you're going to use -- you'll be using there?

We can take any heavy crude, which comes from Middle East, Saudi and Iraq crudes we can take.

Okay. Not Venezuela?

Venezuela, we are -- at present, we are not planning as that is very low API and high tan. So we will not contemplate to take that.

Okay, sir. And in terms of all the other refineries, which -- are you also looking at any crude from Nigeria?

Yes, we -- source crude from West African countries. So at least once in 2 months, some West African crude we keep source -- including Nigeria.

This is for which refinery, sir?

In Primarily it comes to Visakh refinery, but even now we are processing Nigerian crude, not that it is not.

Okay, sir. Thank you so much for your time.

The next question is from the line of Vipul Kumar Anupchand Shah from Sumangal Investments. Please go ahead.

Hi. Sir, I just want a clarification. You said your lube market share is 36%, 3 7%. That is of the overall market or of the all PSUs combined?

It's among OMCs, oil marketing, sir.

So what should be your overall market share?

To my knowledge, because this number is not readily availab le, but according to me, it should be around 22% to 26% -- or around 20%.

Here, the problem is as I was expecting that apart from the 3 major OMCs, there are so many active players. I mean, if you look at that, there would be more than 1,000 players. And there are about 41, 48 players which are there. To getting those data, collecting, comparing on a like- to-like basis is quite hypothetical.

Okay. And sir, in response to an earlier question, you mentioned EBITDA around INR 1,000 crores. Is that figure correct, sir?

Yes.

And lastly, sir, what is our cumulative investment till date in Rajasthan refinery?

Investment means, you want our equity contribution or the total...

Yes, our equity contribution, sir?

Yes, we contributed around INR14,700 crores.

And in one earlier presentation, if I remember correctly, you had mentioned -- I think GRM of around $20 per barrel, if I remember correctly for -- so what is the roadmap for such high GRM for Rajasthan refinery, sir?

Roadmap is to set up the refinery and start processing and realize the high GRM…

And high GRM, we had mentioned because of the petrochemical content, because of the energy efficiency, because of high complexity because that is, and the petrochemical conversion index would be the highest, about 26%.

26%.

Okay, sir. Thank you so much.

Thank you. Ladies and gentlemen, we will take that as the last question for today. I will now hand the conference over to Mr. Varatharajan for closing comments. Over to you, sir.

Thank you, Michelle. I 'd like to open the floor for the management, if you have any closing comments.

Thank you. Varatha for great -- interacting with all of you. I'm sure we will continue with our efforts to add value to the shareholders and also ensure that all the projects which we have taken, we commission it at the earlier and we start adding -- bringing new volumes as well as efficiencies in the into the holder. I can only say that for the last year, we -- apart from the performance in terms of physical and all, in terms of rewarding the shareholders, we have given a healthy dividend of almost 31.5 per share. And further, we have also declared a bonus of 1 share for every 2 shares. And we would continue to reward our shareholders and we would also thank t hem for being with us and supporting us in all our efforts. Thank you.

Thank you, sir. Thank you, members of the management. Ladies and gentlemen, on behalf of Antique Stockbroking, that concludes this conference call. We thank you for joining us, and you may now disconnect your lines. Thank you, everyone.