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BPCL Q4 results analysis

BPCL Q4 results analysis

Last updated: 27 May, 2021 | 12:07 pm

BPCL Q4 results analysis

Profit beats estimates: BPCL has reported a four-fold rise in net profit to Rs 11,940.13 crore in Jan-Mar 21 period, beating street expectations. Analysts had earlier anticipated a net profit of about Rs 1,980 crore. The massive beat was due to lower tax expenses and one-off gain from the sale of its subsidiary (for Rs 6,993 crore).  

Revenues rise: Revenue rose 15% to Rs 76,882 crore. Analysts had pegged the metric at Rs 76,410 crore. Revenue rose on the back of higher other income during the quarter. Other income rose 10% to Rs  crore.

Strong operating performance: BPCL’s operating profit rose 17.5% on-year to Rs 5,058 crore. EBITDA margin rose 10 bps to 6.6% in the Jan-Mar 21 period. The operating performance also beat estimates. 

GRM improves: The average gross refining margin—what BPCL earns by refining a barrel of crude oil—stood at $4.06 a barrel in FY21. This is higher than $2.5 per barrel reported in the previous fiscal year (FY20).

Record dividend: BPCL has announced a final dividend of Rs 58 per share, which includes a one-time special dividend of Rs 35. The special dividend relates to the proceeds collected from the shares sold by the company belonging to BPCL Trust. 

Privatisation progress: The government is looking to divest its 52.9% stake in BPCL, valued at more than Rs 50,000 crore. This is part of its mega divestment plan to raise up to Rs 1.75 lakh crore through stake sales in FY22. The sale is expected to complete in the ongoing fiscal. BPCL’s other state-owned peers—Indian Oil and HPCL too have reported strong profit and revenue growth in the quarter.

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