BPCL stock down by more than 1%, in spite of good June quarter result

Bharat Petroleum Corporation Ltd ‘s (BPCL) stock is down today. At 3:25 p.m. IST on August 14^th, the stock is down by 1.41% at Rs 317.95. At this time, Nifty 50 is up by 0.011%.

The decline today is in spite of the good June quarter result that the company has posted. BPCL reported a consolidated net profit more than doubling to ₹6,839.02 crore from ₹2,841.55 crore a year ago. This reflects a year-on-year growth of about 141% in consolidated net profit.

Revenue from operations edged up to ₹1,29,614.69 crore. This was  ₹1,28,106.39 crore in the same quarter last year. Revenue from operations saw a marginal year-on-year increase of around 1.2%. Other income rose to ₹749.71 crore from ₹570.49 crore a year earlier.

Stronger Operational Performance

Profit before exceptional items and tax jumped to ₹8,871.69 crore from ₹3,858.90 crore last year, driven by better product mix and tighter cost control.

Operating margin rose to 6.32% from 2.68%, while net profit margin improved to 5.28% from 2.22%. Average Gross Refining Margin stood at $4.88 per barrel, down from $7.86 a year ago.

Exceptional items during the quarter stood at ₹67.38 crore, relating to costs at its subsidiary Bharat PetroResources Ltd (BPRL). This follows a Force Majeure event in the Mozambique project.

Finance costs came in at ₹757.73 crore. This is down from ₹888.95 crore a year earlier. Depreciation and amortisation expenses increased to ₹1,888.96 crore from ₹1,686.13 crore last year, reflecting ongoing capital investments.

Operational Highlights

Refinery throughput for the quarter was 10.42 million metric tonnes (MMT). Total market sales reached 13.58 MMT, with domestic sales continuing to be the primary contributor.
Net worth strengthened to ₹89,516.81 crore from ₹78,719.07 crore in the same period last year. The debt-equity ratio eased to 0.44 from 0.54, while outstanding debt stood at ₹39,451.77 crore.

BPCL said it remains focused on driving operational efficiency, completing projects on schedule, and creating long-term value for shareholders, even as it works to address challenges in its overseas exploration portfolio.

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