BPCL Q2 results showed net profit of INR48.63bn ($512mn) for the September quarter, down 21% from INR61.91bn ($652mn) a year earlier. However, the state refiner swung back from a loss of INR39.62bn ($417mn) in the June quarter.
What drove the BPCL Q2 results
Refining margins were strong. Even so, marketing losses ate into them. Like other state retailers, BPCL is selling petrol, diesel and LPG below market rates during the West Asia conflict. As a result, its cumulative LPG under-recoveries reached INR173.3bn ($1.83bn) on 30 September, up from INR123.2bn at the end of March.
Meanwhile, revenue from operations rose 29% to INR1.58tn ($16.6bn). Refining throughput also climbed to 10.41mn tonnes, from 9.82mn tonnes a year earlier.
New refinery company
Separately, the board approved a wholly owned subsidiary for the planned refinery and petrochemical complex at Ramayapatnam in Andhra Pradesh. The company will have authorised share capital of up to INR49bn ($516mn). Still, BPCL said the investment decision will come later, once feasibility reports are final.
On the market, the shares closed down 1.74% at INR281.95. For context, see our report on India’s product exports.
