Bharat Petroleum Corporation Limited (BPCL), India's third-largest state-run oil refiner, has announced its financial results for the fourth quarter of fiscal year 2024-25 (Q4 FY25), revealing an 8% year-on-year decline in net profit, primarily due to losses in the domestic LPG segment.?
Financial Performance Overview
In Q4 FY25, BPCL reported a consolidated net profit of Rs 4,391 crore, down from Rs 4,789 crore in the same quarter of the previous fiscal year. Revenue from operations also saw a 4% decline, totaling Rs 1.27 trillion compared to Rs 1.32 trillion in Q4 FY24. The company's average Gross Refining Margin (GRM) for the year stood at $6.82 per barrel, a significant decrease from $14.14 per barrel in the previous year.
Impact of LPG Losses
A significant factor contributing to the profit decline was the loss incurred from selling domestic LPG below cost. In Q4 FY25, BPCL reported a loss of Rs 3,217.82 crore from LPG sales, bringing the total loss for FY25 to Rs 10,446.38 crore. This under-recovery was a result of government-imposed pricing stability, which kept domestic LPG prices unchanged despite rising input costs.
Dividend Declaration
Despite the challenging financial quarter, BPCL's board of directors has recommended a final dividend of Rs 5 per equity share (face value Rs 10 each) for FY25. This is in addition to the interim dividend of Rs 5 per share already paid during the year. The final dividend is subject to shareholder approval at the upcoming Annual General Meeting and will be paid within 30 days from the date of declaration.
Operational Highlights
Refinery Throughput: BPCL processed 10.58 million metric tonnes (MMT) of crude oil during Q4 FY25, compared to 10.36 MMT in the same period last year.?
Domestic Sales: Sales in the domestic market stood at 13.42 MMT, reflecting a 1.82% increase year-on-year.
Export Sales: Export sales were modest at 0.30 MMT
Outlook
Looking ahead, BPCL aims to enhance its refining margins and reduce losses in the LPG segment. The company is also focusing on expanding its renewable energy portfolio and exploring opportunities in green hydrogen and other sustainable energy sources. These initiatives are expected to bolster BPCL's financial performance in the coming quarters.
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