BPCL's Q1FY23 performance warns of a gloomy year ahead

10 Aug 2022 , 10:27 AM

Bharat Petroleum Corporation Limited (BPCL) announced its results for the quarter ended June 30, 2022 post market hours on August 6. The company has significantly underperformed during the quarter and reflects on a stressful year ahead.

The company reported a standalone Net Loss of Rs6,290.80 crore in Q1FY23 as compared to a Net Profit of Rs1,559.62 crore in the previous corresponding quarter.

Oil & Gas PSU reported a 70.70% yoy jump in its Net Sales at Rs1,21,065.89 crore as compared to Rs70,921.28 crore in the previous corresponding quarter.

The company reported a pre-tax loss of Rs7,687.73 crore in Q1FY23 as compared to a PBT of Rs1,996.14 crore in Q1FY22.

The company reported a 66.32% yoy jump in total expenses at Rs1,46,533.79 crore in Q1FY23. Cost of material consumed soared 137.22% yoy at Rs63,588.25 crore while employee benefits expense dipped to Rs624.57 crore.

Refinery throughput increased by 41.67% to 9.69 metric million tonnes (MMT) in Q1FY23 as compared to 6.84 MMT in Q1FY22. Export sales jumped 64.52% to 0.51 MMT in Q1FY23 from 0.31 MMT in Q1FY22.

The Average Gross Refining Margin (GRM) of the corporation for the quarter ended June 30, 2022, is $27.51 per barrel as compared to $4.12 per barrel posted in the same period last year.

The overall worse-than-expected quarterly performance has made analysts believe that recovery in the coming quarters could be a real challenge for the company. As the performance declined significantly, this year may not be one of the best years of BPCL.

At around 10.33 AM, BPCL was trading at Rs327 up by 0.38% from its previous closing of Rs325.75 on the BSE. The scrip opened at Rs327.10 and has touched intraday high and low of Rs330.10 and Rs326.15 respectively.