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The shares of Bharat Petroleum Corporation Limited declined over 3% in early trading hours today after the company posted an 82% YoY decline in profits.
The government-owned oil company posted a standalone profit of Rs 2,130.53 crore for the quarter ended in March 2022, down 82.15% from Rs 11,940.13 crore posted during the corresponding quarter last year. However, the revenues of the company for the quarter grew 25% to Rs 123,551 crores during the quarter. The decline in profits despite registering growth in revenues was on account of the firm's decision to hold fuel prices despite the risk of higher input costs.
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In March 2022, the oil benchmark Brent reached a high of $139.13 per barrel, surging 56% in a month and reaching 14-year highs. The company was unable to fully utilize the rising prices to keep retail fuel prices in control. The company said that the refinery throughput was lower at 8.12 million tonnes during the quarter while market sales saw a marginal increase from 11.17 million tonnes last year to 11.82 million tonnes.
For the full year ended on 31st March 2022, the company's standalone profit declined 54% to Rs 8,788.73 crores from Rs 19,041.67 crores posted last year. However, the company's revenues jumped 42.16% as the revenues for FY22 stood at Rs 432,570 crores. The company had a Gross Refining Margin of $9.09 per barrel as opposed to $4.06 per barrel.
The stock of BPCL has been declining consistently since mid-October. It saw brief rallies in the opposite direction during late December and early January but fell again. In 2022 itself, the share has contracted over 18%.
Today the share witnessed a full gap down opening and opened at Rs 325 per share and fell over 3% in early trading hours. The share touched a low of Rs 312.20 per share today, its 52-week low, a price level the share hadn't fallen back to since May 2020.
Article by Aman Agarwal.
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