scorecardresearchBPCL stock rallies over 2.5% after Q4 net profit jumps 168%

BPCL stock rallies over 2.5% after Q4 net profit jumps 168%

Updated: 23 May 2023, 12:14 PM IST
TL;DR.

The state-owned oil marketing company on Monday posted a 168% YoY and 293% QoQ surge in its Q4FY23 consolidated net profit to 6,870 crore. It reported a net profit of 1,747 crore in the preceding December quarter.

In FY23, BPCL reported an average gross refining margin (GRM) of $20.24 per barrel,

In FY23, BPCL reported an average gross refining margin (GRM) of $20.24 per barrel,

Continuing their upward trajectory, shares of BPCL started Tuesday's trading session on a positive note. This came after the company reported a robust performance for the March quarter. 

The state-owned oil marketing company on Monday posted a 168% YoY and 293% QoQ surge in its Q4FY23 consolidated net profit to 6,870 crore.

The company reported a net profit of 1,747 crore in the preceding December quarter. During the first and second quarters of FY23, BPCL recorded a significant net loss of 6,263 crore and 304 crore on holding petrol and diesel prices despite a surge in crude prices, triggered by Russia's invasion of Ukraine.

During the April-June quarter, BPCL and other oil marketing companies (OMCs) did not revise fuel prices, resulting in increased operating expenses that adversely affected the companies' bottom-line margins.

However, crude oil prices have moderated sharply due to mounting concerns surrounding a potential economic downturn in the United States and renewed worries regarding the banking industry. For the last 10 months, both Brent futures and WTI futures have been trading below $100 per barrel.

The basket of crude oil that India imports was over $100 per barrel in April last year and is now less than $75.

This lowered the operating expenses of BPCL in the March quarter, reaching 1,06,958 crore, reflecting a quarter-on-quarter fall of 6.93%. 

In the first quarter (Q1), the operating expenses were registered at 1,26,912 crore, followed by 1,13,374 crore in Q2, and 1,14,924 crore in Q3.

The company witnessed a growth of nearly 8% in its revenue from operations, reaching 1.3 lakh crore in Q4 compared to 1.24 lakh crore in the corresponding period of the previous year.

In terms of revenue segments, the downstream petroleum segment generated 1.33 lakh crore, while the exploration and production of hydrocarbons segment reported revenue of 26.3 crore in the fourth quarter.

BPCL recorded a significant decline in net profit for the full year 2022–23, plummeting by 81.75% to 2,131 crore in comparison to 11,682 crore in FY22. However, there was an increase in revenue from operations for FY23, reaching 5.33 lakh crore, compared to 4.32 lakh crore in the previous fiscal year.

In FY23, BPCL reported an average gross refining margin (GRM) of $20.24 per barrel, an increase from $9.66 per barrel in FY22. It is important to note that these figures do not include the impact of Special Additional Excise Duty and Road & Infrastructure Cess, which were implemented from 1st July 2022.

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Stock Price chart of BPCL.

In response to the strong Q4 scorecard, the stock started the Tuesday's trading session strongly at 367 apiece and eventually rose to hit an intraday high of 371, up 2.6% against the previous closing price of 361.60.

31 analysts polled by MintGenie on average have a 'buy' call on the stock.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.

 

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First Published: 23 May 2023, 12:14 PM IST