BPCL Q4FY23 PAT UP 168% at Rs6,870 crore on higher GRMs and better marketing margins
BPCL reported 13.3% growth in sales revenues for the March 2023 quarter on consolidated basis at Rs118,115 crore. Revenues were flat sequentially. For the quarter, the company reported higher refinery throughput at 10.63 MMT, higher market sales at 12.91 MMT, but lower export sales at just 0.34 MMT on weak global demand amid recessionary concerns. Lower prices have helped the marketing margins get back to normal levels.
In the last couple of quarters, BPCL had to take huge losses due to the landed cost of crude being higher than the selling cost of petrol and diesel. This led to negative margins and that was eventually compensated through a one-time scheme by the government of India. Lower crude prices globally, with Brent under $80/bbl helped the matters for the downstream oil company as it enjoyed better marketing margins in the quarter.
Financial highlights for Mar-23 compared yoy and sequentially
| BPCL | |||||
Rs in Crore | Mar-23 | Mar-22 | YOY | Dec-22 | QOQ |
| Total Income (Rs cr) | ₹ 1,18,115 | ₹ 1,04,282 | 13.27% | ₹ 1,19,170 | -0.88% |
| Operating Profit (Rs cr) | ₹ 8,457 | ₹ 3,441 | 145.75% | ₹ 1,573 | 437.63% |
| Net Profit (Rs cr) | ₹ 6,870 | ₹ 2,559 | 168.46% | ₹ 1,747 | 293.27% |
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| Diluted EPS (Rs) | ₹ 32.26 | ₹ 12.02 |
| ₹ 8.20 |
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| OPM | 7.16% | 3.30% |
| 1.32% |
|
| Net Margins | 5.82% | 2.45% |
| 1.47% |
|
For the fourth quarter, operating margins increased sharply from 3.3%% to7.16% on the back of higher refining and marketing margins due to lower crude prices. Even the net margins increased from 2.45% to 5.82% yoy. The higher profits led to BPCL improving its interest coverage and its debt service coverage ratios. During the quarter, the company took a write-off to the tune of Rs939 crore due to impairment of oil and gas assets.