Bharat Petroleum Q3 net up 79.21% yoy at Rs2,805cr on higher associate company profits and lower taxes

1 Feb 2022 , 08:46 AM

Bharat Petroleum reported 44.27% yoy growth in total sales revenues for the Dec-21 quarter on consolidated basis at Rs95,326cr. On a sequential basis, the revenues were up by 24.71%.

During the December 2021 quarter, the company witnessed overall product sales of 11.15 MMT including exports of 0.55 MMT; both slightly higher on a yoy basis.

Refinery throughput at 7.95 MMT in Q3 was higher yoy compared to just 7.24 MMT in the same quarter last year. On a yoy basis, the downstream petroleum, which is the bulk of the top line of BPCL, saw growth of 35.05% yoy while the much smaller exploration and hydrocarbon business saw doubling of top line, although it was not really significant.

For the Dec-21 quarter, the operating profits were down on a yoy basis by -13.43% at Rs3,792cr. During the quarter, EBIT of the downstream oil business fell by -5.73%.

However, the EBIT of the much smaller exploration and hydrocarbons business dipped into a net loss, putting pressure on the operating profits. The average gross refining margins (GRM) for the first 9 months of FY22 worked out to $6.78/bbl as against just $2.90/bbl in the corresponding period last year.

Operating margins fell from 6.63% in Dec-20 quarter to 3.98% in the Dec-21 quarter. Operating margins were lower on a sequential basis also, due to the higher top line effect.

Net Profit after tax (PAT) for the Dec-21 quarter was up 79.21% yoy at Rs2,805cr despite a fall in the operating profit performance. The growth in the net profits of BPCL can be attributed to two factors. Firstly, in the current quarter, BPCL reported profits from associates of Rs451cr against a loss from associates of Rs727cr in the Dec-20 quarter.

At the same time, the tax outgo was nearly 40% lower on a yoy basis; which boosted the net profits. PAT margins improved from 2.37% in the Dec-20 quarter to 2.94% in the Dec-21 quarter. The PAT margins were lower on a sequential basis.

 

Financial highlights for Dec-21 compared yoy and sequentially

	BPCL
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Income (Rs cr)	₹ 95,326	₹ 66,075	44.27%	₹ 76,439	24.71%
EBITDA (Rs cr)	₹ 3,792	₹ 4,380	-13.43%	₹ 3,616	4.87%
Net Profit (Rs cr)	₹ 2,805	₹ 1,565	79.21%	₹ 3,201	-12.37%
Diluted EPS (Rs)	₹ 13.17	₹ 7.93		₹ 15.03
EBITDA Margin	3.98%	6.63%		4.73%
Net Margins	2.94%	2.37%		4.19%