BPCL Q4 Results: PAT Falls 30% To Rs 4,789 Crore; Co Announce 1:1 Bonus Share

State-owned Bharat Petroleum Corporation Limited (BPCL) posted its fourth-quarter financial results for the fiscal year 2023-24 on Thursday, revealing a notable 30% decrease in consolidated net profit compared to the same period last year. The company reported a consolidated net profit of Rs 4,789.57 crore, down from Rs 6,870.47 crore in the previous year.

This decline in profit comes amidst challenging market conditions characterised by weakening margins and volatility in crude oil prices.

BPCL attributed the dip in profit partly to the reduction in diesel and petrol prices by Rs 2 per litre in mid-March, a move that aimed to address consumer concerns but had an impact on the company's margins.Additionally, the fluctuating crude oil prices over the quarter further contributed to the challenging financial landscape.

Despite the decline in net profit, BPCL's revenue from operations witnessed only a marginal decrease, standing at Rs 1.32 lakh crore compared to Rs 1.33 lakh crore in the corresponding period last year.

The board of the company has proposed issuing bonus shares in the ratio of 1:1, subject to shareholder approval through postal ballot. The record date for determining shareholder eligibility to receive bonus shares has been set for Saturday, June 22, 2024.

Additionally, the board recommended a final dividend of Rs 21 per equity share (pre-bonus) for the fiscal year 2023-24, translating to a final dividend of Rs. 10.5 per share (post-bonus).

The company's earnings before interest, tax, depreciation, and amortisation (EBITDA) for the fourth quarter fell to Rs 7,884.14 crore, a decrease from Rs 10,526.73 crore reported last year.

BPCL disclosed that its average gross refining margin (GRM) for the fiscal year 2023-24 was $14.14 per barrel, down from $20.24 per barrel during the corresponding period last year.

On the stock market front, BPCL shares closed at Rs 592.30 each on May 9, marking a 4.58% decrease from the previous day's close.

BPCL's throughput for the quarter stood at 10.36 million metric tonnes (MMT), slightly lower than the 10.63 MMT reported last year. On the marketing front, the company recorded 2.09% growth, reaching 13.18 MMT during January-March 2024, compared to 12.91 MMT in the same period last year.

During Q4, BPCL expanded its fuel station network by adding 308 new fuel stations, bringing the total to 21,840. Additionally, the company commissioned 323 CNG stations, increasing the total count to 2,031 as of March 31, 2024.

"We intend to increase our refining capacity to 45 MMTPA and open 4,000 new fuel stations by FY2029. We are investing in future large investments, including the opening up of petchem facilities in Bina and Kochi, increasing our gas footprint by FY2029, and exploiting economic potential in green businesses," said CMD G. Krishnakumar.

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