BPCL reports profit after tax at Rs 10,644 crore in Q1, beats estimates

Company recorded a loss of Rs. 6,148 crore in the year-ago period

State-run Bharat Petroleum Corporation (BPCL) reported a profit after tax (PAT) of Rs. 10,644 crore during the June quarter (Q1FY24), compared to a loss in the year-ago period.

Correction in crude oil prices and improvement in marketing margins helped profits.

For Q1FY24, BPCL reported net sales of Rs. 1.12 trillion, down 6.7 per cent.

Sequentially, net sales fell 4.3 per cent and net profit was up 54.9 per cent.

The company reported a loss of Rs. 6,148 crore in the year-ago quarter.

In a Bloomberg poll, six analysts estimated revenue of Rs. 1.16 trillion and seven analysts estimated an adjusted net income of Rs. 7772 crore.

“Earnings were significantly ahead of estimates as both refining and marketing profits surprised. Debt is down 20 percent qoq, book value is up 20 percent qoq so not just P&L improvements but there has also been meaningful balance sheet easing,” said Vivekanand Subbaraman, an analyst with Ambit Capital.

The company also saw a 43.4 per cent jump in other income at Rs. 1,038 crore. It said other income for the quarter includes Rs. 24.40 crore of foreign exchange gain.

In the year-ago quarter, BPCL saw other expenses inclusive of Rs. 966.02 crore on account of foreign exchange loss.

BPCL’s refinery throughput was 8 per cent higher at 10.36 million tonnes (MT), from 9.6 MT a quarter ago. And, market sales reported a similar growth of 8.42 per cent.

The company said market sales increased mainly due to 6.12 per cent rise in petrol and 5.95 per cent growth in diesel. It was also because of a 14.18 per cent growth in aviation fuel sales.

Gross refining margin (GRM) for the quarter was down at $12.64 per barrel against $ 27.51 per barrel previously.

Further, BPCL said revenue from operations for the quarter under review includes Rs. 848.74 crore. This was the revenue recognised from a cumulative net negative buffer as the retail selling price of LPG cylinders was less than the market determined price.