BPCL net profit up 26% at Rs 1,305 crore

State-run Bharat Petroleum Corporation (BPCL)’s net profit grew 26% for the July-September 2016 quarter on the back of a higher other income Rs 1022.34 crore.

For the July-September 2016 ended quarter, the company reported a net profit of Rs 1305.18 crore, 26% higher than Rs 1034.52 crore in the same period a year back.

Total income from operations rose 4% to Rs 54,866.89 crore from Rs 52,525.58 crore in the corresponding period last year. Total expenses for the company rose 5% to Rs 53984.21 crore from Rs 51643.77 crore a year back.

The company did not meet analyst expectations on its net profits for the September 2016 quarter. In a Bloomberg poll, 22 analysts had estimated BPCL’s standalone sales at Rs 49166.4 crore while 21 analysts had estimated a net profit of Rs 1573.8 crore.

“The results were lower than estimated, the other income has helped. Marketing volumes for the company is coming under pressure and one needs to monitor in the following quarters,” said an analyst from a domestic brokerage firm who did not wish to be identified.

BPCL did not report any under-recoveries for the July-September 2016 quarter. Average gross refining margins (GRM)s were at $3.08 a barrel in the September 2016 quarter against $3.87 per barrel reported in the corresponding period a year ago. The firm's crude throughput was higher at 6.39 million tonnes (mt) against 5.96 mt reported a year ago.

The market sales for the April-September 2016 period was higher at 18.66 mt compared to 17.45 mt achieved during the corresponding period of the previous year. The increase is mainly in retail sales of petrol at 8.43%, retail sales of aviation fuel at 22.27% and of LPG at 11.73%, according to the company’s statement to the BSE.

On Friday, BPCL closed at Rs 649.45 a share, 2.31% lower from its previous close of Rs 664.80 apiece.

Bharat Petroleum