BPCL returns to profitability in Q2FY24; logs consolidated net profit of Rs 8,234.55 crore

30 Oct 2023 , 10:30 AM

The state-owned Bharat Petroleum Corporation Ltd (BPCL) announced a return to profitability in the September quarter, thanks to an increase in marketing margins. The business stated in a statement that its consolidated net profit in July-September was Rs 8,243.55 crore, compared to a loss of Rs 338.49 crore in the same period last year.

The profit was bolstered by an increase in marketing margins due to a freeze on petrol and diesel price revisions despite a drop in input crude oil prices, which helped recoup losses sustained while rates were high last year.

In the second quarter of the current fiscal, pre-tax earnings from the downstream oil refining and marketing sector were Rs 11,283.29 crore, compared to a loss of Rs 123.17 crore in the same time previous year.

Despite a jump in global oil prices following Russia’s invasion of Ukraine, state-owned gasoline wholesalers BPCL, Indian Oil Corporation (IOC), and Hindustan Petroleum Corporation Ltd (HPCL) froze prices last year. This was done to protect customers from price volatility.

Lower oil prices caused revenue to fall to Rs 1.16 lakh crore in July-September from Rs 1.28 lakh crore the previous year.

The standalone EBITDA for Q2FY23-24 was Rs 13,679.21 crore, up from Rs 1,991.41 crore in Q2FY22-23.

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