Bpcl Net Grows 5.65% To Rs 407.6 Crore

Growth rates fell at Bharat Petroleum Corporation (BPCL), the countrys third largest refiner, in 1996-97. Net profit growth was restricted to 5.65 per cent due to a 108 per cent rise in interest costs, while volume growth fell to 6.77 per cent from 11.72 per cent in 1995-96.

Net sales increased by 14.05 per cent to Rs 10553.6 crore in 1996-97 from Rs 9253.8 crore in the previous year.

Interest cost increased to Rs 82.1 crore from Rs 39.4 crore in the previous year, thanks to heavy borrowing to cover up the non-receipt of Rs 1,300 crore as arrears from the oil pool account.

 

BPCL has done well on the production front, with crude throughput of 7.59 million tonnes against 7.35 million tonnes last year. Sales of products rose to 15.78 million tonnes from 14.78 million tonnes in the previous year. This is in spite of a 21-day shutdown at its plant in January.

However, the company has consolidated its market share to 20.40 per cent.

Tax provision for the year declined by 11.23 per cent to Rs 237 crore. EPS rose 12 per cent to Rs 28.84 (Rs 25.72) and the company has announced a dividend of 33 per cent for 1996-97 leading to an outgo of Rs 49.5 crore.

The company had budgeted for a capital expenditure of around Rs 650-700 crore for 1996-97 but found it difficult to obtain funds. The company is setting up a 6 million tonnes per annum (mtpa) refinery in collaboration with Oman Oil. Another 3mtpa refinery in Assam is expected to go on stream in 1998. It has commissioned a 22tmpta LPG bottling plant at Chennai in March 1997 at a total cost of Rs 20 crore.

The current year, 1997-98 is expected to be better as arrears from the oil pool account are expected to come in. New refining margins for 1996-99 to be announced are also expected to improve profitability.