Bharat Petroleum Corporation Limited (BPCL), a state-run oil major, reported a robust 37% year-on-year (YoY) growth in standalone net profit for Q3 FY2024-25, driven by healthy marketing margins. The profit rose to Rs. 4,649.20 crore from Rs. 3,397.27 crore in Q3 FY2023-24. On a quarter-on-quarter (QoQ) basis, BPCL’s standalone net profit surged 94%, up from Rs. 2,397.23 crore in the September quarter of the current fiscal.
However, BPCL’s profit after tax (PAT) for the nine-month period of FY25 fell sharply by 55%, declining from Rs. 22,449.32 crore in April-December FY24 to Rs. 10,061.20 crore during the same period in FY25.
Revenue from operations for Q3 FY25 slipped by 1.86% YoY, reaching Rs. 1,27,520.50 crore compared to Rs. 1,29,946.95 crore in Q3 FY24. Despite the revenue decline, BPCL announced an interim dividend of Rs. 5 per share for FY25, with January 29 set as the record date for the payout.
BPCL demonstrated significant improvement in its operating margins for Q3 FY25. The operating margin rose to 4.19%, compared to 2.98% in Q3 FY24 and 1.92% in the previous quarter. The net profit margin for the quarter stood at 3.63%, higher than 2.03% in the September quarter and 2.61% in Q3 FY24.
On a consolidated basis, BPCL reported a 20% YoY rise in net profit, reaching Rs. 3,806 crore in Q3 FY25, compared to Rs. 3,181 crore in the same period last year. QoQ, consolidated PAT surged by 66%, from Rs. 2,297 crore in the September quarter.
BPCL’s Average Gross Refining Margin (GRM) for the nine-month period of FY25 stood at USD 5.95 per barrel, a significant drop from USD 14.72 per barrel in the same period of FY24. These figures are before accounting for the impact of the Special Additional Excise Duty and Road & Infrastructure Cess, implemented on July 1, 2022.
While BPCL has shown strong quarterly growth, the decline in nine-month PAT and GRM highlights challenges in the broader market environment. The company’s focus on improving margins and maintaining profitability underscores its resilience amidst fluctuating market conditions.