The net profit of Bharat Petroleum declined more than 82 percent from a profit of Rs 11,904.13 crore reported in the same quarter last year.
Bharat Petroleum Corporation on May 25 posted a net profit of Rs 2,130.5 crore in the fourth quarter of financial year 2021-22, which was 82 percent lower as compared to the profit of Rs 11,904.13 crore recorded in the corresponding period of the past fiscal.
Revenue from operations rose 25 per cent to Rs 1.23 lakh crore on higher oil prices but losses on petrol, diesel and domestic LPG sales dented the financials.
The slide in net profit, despite the surge in revenue, is being attributed to the firm’s decision to hold the fuel prices despite the risk in input cost. BPCL and other public sector oil companies held petrol and diesel prices for a record duration despite a surge in the cost of crude oil to a 14-year high.
Even though the reopening of the economy during the March quarter saw marketing volumes surge, BPCL was unable to reap the benefits of a strong demand environment as it could not raise prices of retail fuel for the majority of the quarter even as global crude oil prices simmered.
During the quarter, global crude oil prices rallied more than 30 percent aided by a strong demand environment in the West and sanctions imposed on Russian oil exports following the country’s invasion of Ukraine in late February.
For the full FY22 (April 2021 to March 2022), BPCL reported a net profit of Rs 9.076.50 crore as opposed to a net profit of Rs 19,110.06 crore in the previous financial year. The firm earned USD 9.09 on turning every barrel of crude oil into fuel in FY22, up from USD 4.06 per barrel gross refining margin in the previous fiscal.
With PTI inputs
Download your money calendar for 2022-23 here and keep your dates with your moneybox, investments, taxes