Nayara Energy is a prominent player in India’s oil refining and retail sector. The company is involved in refining, marketing, and distributing petroleum products across the country. With one of the largest private sector refineries in India, Nayara Energy plays a crucial role in the nation's energy supply. Over the years, the company has steadily expanded its presence in retail and has taken steps to optimize its operations and drive profitability. In FY24, Nayara Energy demonstrated solid financial performance, leveraging its refining capacity and strategic initiatives.
Nayara Energy’s revenue increased from ₹1,38,112 crores in FY 2023 to ₹1,55,091 crores in FY 2024, marking a 12.3% growth. This reflects strong demand for petroleum products and the company’s expanded retail presence.
EBITDA improved from ₹17,558 crores in FY 2023 to ₹19,730 crores in FY 2024, reflecting a 12.4% increase. This indicates the company’s ability to generate higher operating profits despite rising material costs.
PAT increased from ₹9,426 crores in FY 2023 to ₹12,321 crores in FY 2024, showing a 30.7% increase. This reflects strong overall profitability growth driven by improved margins and cost efficiencies.
NPM improved from 6.82% in FY 2023 to 7.94% in FY 2024, indicating an enhancement in the company’s net profitability.
EPS increased from ₹62.54 in FY 2023 to ₹81.75 in FY 2024, marking a 30.7% increase, indicating improved returns for shareholders due to the company's higher profitability.
Nayara Energy expanded its crude oil processing capabilities, handling a total of 129 different grades of crude during FY 2023-24. The refinery’s Single Point Mooring (SPM) system managed its highest-ever crude cargo volume. A notable 95% of the crude processed at Vadinar was ultra-heavy and heavy grades, with the production of high-value light and middle distillates, such as diesel and gasoline, reaching 88%. This efficient processing strategy minimized the production of low-value products like naphtha and petcoke, further enhancing the refinery's profitability.
FY 2023-24 saw record production levels for key products at the Vadinar Refinery. The production of Liquefied Petroleum Gas (LPG), domestic Motor Spirit (MS/Petrol), and domestic diesel (including Light Diesel Oil (LDO) and High Flash High-Speed Diesel (HFHSD)) hit new highs, with 1.2 MMT, 3.3 MMT, and 6.6 MMT produced respectively.
Aviation Turbine Fuel (ATF) production also reached its highest levels, at 1.9 MMT, thanks to in-house optimization efforts. This impressive production performance showcases the refinery’s ability to meet rising market demands while optimizing throughput.
In FY 2023-24, the Vadinar Refinery maintained its momentum of operational excellence, building on the achievements of the previous year’s major transformation. The refinery processed 20.32 million metric tons (MMT) of crude oil, maximizing the use of alternative crude grades across its two Crude Distillation Units (CDUs). This optimization was driven by the strategic selection of cost-efficient crude oil, achieving an impressive capacity utilization of 101.6%. Additionally, the overall operational availability of the refinery’s key process units was 99.74%, further underscoring its high efficiency. In a global benchmarking study conducted by Solomon Associates for CY 2022, the refinery was recognized as one of the top performers in various operational metrics.
Nayara Energy continued to focus on energy efficiency, achieving a 6% reduction in energy intensity compared to the previous financial year. By optimizing both primary and secondary unit capacities, the company minimized energy usage to its lowest levels ever. These efforts contribute not only to cost savings but also to Nayara’s commitment to reducing its environmental footprint.
The company is set to enter the petrochemical sector with the launch of its Polypropylene (PP) unit in FY 2024-25. In preparation for this, Nayara successfully revamped the Fluidized Catalytic Cracker (FCC) unit and constructed a new Propylene Recovery Unit, both of which underwent successful performance trials. These efforts position the company to leverage propylene, the raw material for polypropylene production, enhancing its product portfolio and expanding its market reach.
Throughout FY 2023-24, Nayara Energy undertook several facility enhancements and process improvements. A Vapor Recovery Unit was successfully commissioned at the White Oil Loading Gantries, and the storage facilities for ethanol and Ethanol Blending Motor Spirit (EBMS) were expanded through in-house modifications to two storage tanks. These initiatives reflect the company’s dedication to operational efficiency and environmental sustainability.
Nayara Energy’s R&D team achieved a milestone in FY 2023-24, receiving its first Indian patent for developing a novel method for separating oil from water and sediments in the Effluent Treatment Plant. This innovation demonstrates Nayara’s commitment to improving operational processes and advancing environmental sustainability.
As part of its efforts to promote sustainable fuels, Nayara introduced two new grades of MS-Ethanol Blended Motor Spirit (E12 & E20) and a new grade of biofuel-blended diesel on an experimental basis during FY 2023-24. These initiatives aim to enhance market acceptance and support the government's push towards cleaner, renewable fuels. The increased ethanol blending in MS/Petrol during this period highlights Nayara’s ongoing commitment to sustainability in transportation fuels.
In summary, FY 2023-24 was a year of continued excellence and strategic expansion for Nayara Energy’s Vadinar Refinery. From record-breaking production and efficient crude processing to energy optimization and innovation in petrochemicals, Nayara remains at the forefront of the industry.
