BPCL Q1 results: Standalone net profit nosedives 71% to Rs 3,015 crore on higher crude price, weak GRMs

State-owned company BPCL reported a 71 percent decline in standalone net profit at Rs 3,015 crore for the first quarter of FY25. The fuel retailer reported Rs 10,551 crore in profit in the corresponding quarter in FY24. 

The company’s revenue from operations was flat at Rs 1.28 lakh crore during the period under review compared to Rs 1.28 lakh crore in the corresponding period of the previous year. 

The decline in profit comes amid weak gross refining margins (GRMs) and higher crude oil prices due to geopolitical tensions. Sequentially, net profit declined around 29 percent as the company clocked in profit of Rs 4,224 crore in the fourth quarter of FY24. 

The average gross refining margin (GRM) of the company was at $7.86 per barrel in the April-June 2024 period, which is down from $12.64 per barrel in the last year quarter. 

Total expenses during the June quarter increased 9 percert year-on-year (YoY) to Rs 1.24 lakh crore, compared with Rs 1.14 lakh crore in the year-ago period. The profit before tax (PBT) for the first quarter came in at Rs 4,032 crore, which also declined 71 percent YoY. 

The market sales of the state-owned corporation stood at 13.16 mmt in the reporting quarter as compared to 12.75 mmt in the June 2023 quarter. The increase in sales was mainly driven by petrol with a growth of 6.38 percent, while sales of LPG and aviation turbine fuel (ATF) increase by 4.45 percent and 14.53 percent, respectively. 

Export sales in the reporting June quarter increased marginally to 0.27 mmt, compared with the preceding March quarter's 0.23 mmt. However, when seen against previous year quarter's 0.33 mmt, export sales dropped.