BPCL Q4 results: Net profit rises 159% to Rs 6,478 cr, revenue up 8%

The average gross refining margin for FY23 rose to $20.24 per barrel as against $9.66 a barrel in FY22

State-owned Bharat Petroleum Corporation (BPCL) on Monday reported a net profit of Rs 6,478 crore in the fourth quarter of the current fiscal year 2022-23 (Q4FY23), a 159 per cent increase, compared to the Rs 2,501 crore in the same period a year back.

On a sequential basis, net profit increased 2.3 times from the Rs 1,959 crore registered in the previous October-December quarter (Q3). Back then, the company was back in the black after two consecutive quarters of loss.

Consolidated revenue from operations in Q4 rose 8.1 per cent to Rs 134,000 crore as against Rs 123,000 crore reported in the same quarter last year. In Q2, the company had reported a revenue of Rs 1.28 lakh crore, while in Q1 of FY23, revenue was higher at Rs 1.38 lakh crore. 

The average gross refining margin (GRM) of BPCL for FY23 came in at $20.24 per barrel as against $9.66 a barrel in the previous fiscal year. GRM is the amount that refiners earn from turning every barrel of crude oil into refined fuel products. “However, the suppressed marketing margins of certain petroleum products have offset the benefit of higher GRM,” the company said.

Market sales of the state refiner for FY23 was 48.92 million metric tonnes (MMT) as compared to 42.51 MMT in FY22. The increase was mainly due to aviation turbine fuel (65.6 per cent), high speed diesel-retail (25.4 per cent) and MS (Motor Spirit or petrol)-Retail (18 per cent), the company said. 

Stagnant retail prices, in tandem with volatile crude oil prices, have hurt OMCs’ margins as they have struggled to recover costs from importing and refining crude oil. On Monday, BPCL shares closed at Rs 362 apiece.

Other expenses for the year include Rs 1,488 crore on account of foreign exchange loss, a steep increase from the Rs 285.9 crores registered in the previous year, the company said.

The company's board also recommended a dividend of Rs 4 per equity share of face value of Rs 10 each, for FY23, subject to the approval of the shareholders. On Monday, BPCL shares closed at Rs 362 apiece on the BSE, up 0.5 per cent.