BPCL's profit sees 8-fold increase

Net sales grew by 13.7% to Rs 66,750 cr

State-run Bharat Petroleum Corporation (BPCL) has reported an eight fold increase in net profit for the April-June quarter.

The company's net profit stood at Rs 1,216.3 crore, led by higher other income and lower finance cost. Net profit for the year-ago period was Rs 150.3 crore.

Net sales grew 13.7 per cent to Rs 66,750 crore in the quarter ended June, from Rs 58,705 crore in the corresponding quarter of the previous financial year, while other income was up three times to Rs 1,023 crore from Rs 338 crore during April-June quarter of FY 14, which included forex gain of Rs 587 crore versus loss of Rs 944 crore y-o-y.

"Rs 3,830.6 crore discount on crude oil/products purchased from ONGC/GAIL/NRL, has been adjusted against the purchase cost and Rs 2,408 crore compensation advised by the government by way of subsidy for the quarter accounted as net sales from operations," the company said in its regulatory filing.

On sale of sensitive petroleum products, the company, during the quarter under review, the company absorbed net under-recovery to the tune of Rs 504 crore against Rs 544.95 crore in the corresponding previous quarter.

Earnings before interest, tax, depreciation and amortisation shot up 63.4% year-on-year to Rs 1,480 crore and margin expanded 70 basis points to 2.2% in the first quarter of current financial year 2014-15.

Average gross refining margin came in at $3.38 a barrel as against $4.05 a barrel in the year-ago period.

Finance cost during the quarter increased 63% to Rs 195 crore from Rs 525.3 crore while tax expenses were higher over 8 times at Rs 575 crore compared to Rs 68.8 crore in same quarter last year.

The company's scrip was up 2.94% at Rs 591.15 on the Bombay Stock Exchange.