BPCL posts net profit of Rs 11,940 cr in Q4, to pay final dividend of Rs 58

Privatisation-bound fuel retailer Bharat Petroleum Corporation Limited on Wednesday reported a return to net profit in March quarter at Rs 11,940 crore, which includes one-time gain of Rs 6,993 crore, as against net loss of Rs 1,361 crore in the year-ago period. Profit before exceptional item is at Rs 5,244.5 crore.

Revenue from operations rose 21% to Rs 98,756 crore as compared to Rs 81,296 crore in March 2020. 

The company's board recommended final dividend of Rs 58 per share. The company reported an increase of 15% in revenue and over 17% in EBITDA on a sequential basis.

The total income of the company during Q4 FY21 saw a robust jump to Rs 1,00,419.63 crore from Rs 82,452.99 crore seen in the same quarter of previous year.

The turnaround witnessed by the company in its profitability is largely on account of inventory gains, and also on account of a V-shape recovery seen by the company in the second half of financial year resulting in robust growth in fuel sales.

"As number of Covid-19 cases went down in Jan-Mar 2021 quarter, we witnessed good growth in fuel sales and other petrochemical products following recovery in the economy. In an unprecedented year that began with a lockdown across country and subdued business & economic activities, the fourth quarter was a stand-out quarter that helped the company to report its highest ever growth in top-line and bottom-line," BPCL's Director (Finance)N. Vijayagopal said.

The final dividend would be paid within 30 days from the date of its declaration at the AGM. It is in addition to the interim dividend of Rs 21 per equity share paid for the year by the company.

For the full year (FY21), the company posted its highest-ever profit of Rs 19,041.67 crore as compared to Rs 2,683.19 crore in the previous year.

BPCL's gross refining margins (GRMs) for the year stood at $4.06 per barrel and for Jan-Mar 2021 period at $6.64 per barrel. Its EBITDA was at Rs 27,923.99 crore; EBITDA margin was at 9 per cent in FY21 and 14 per cent in Q4FY21. The debt-equity ratio as on March 31, 2021 was at 0.48x (as against 1.26x in FY20).

Total market sales of BPCL were 38.74 MMT in FY 21. The company also added 2,444 new fuel stations, taking their network strength to 18,637, the 2nd second highest retailing network in India.

On Wednesday, the company's scrip on NSE closed nearly 1% lower at Rs 470.25. 

Mining-to-oil conglomerate Vedanta and private equity firms Apollo Global and I Squared Capital's arm Think Gas are in the race to buy government stake in BPCL.

The stake sale in India's second-largest fuel retailer is crucial to plans to raise a record Rs 1.75 lakh crore from disinvestment proceeds in fiscal 2021-22 (April 2021 to March 2022).

BPCL will give the buyer ownership of around 15.33 per cent of India's oil refining capacity and 22 per cent of the fuel marketing share.

The buyer of the company will get 35.3 million tonnes of refining capacity -- 12 million tonne Mumbai unit, 15.5 million tonne Kochi refinery and 7.8 million tonne Bina unit.

BPCL also owns 18,639 petrol pumps, 6,166 LPG distributor agencies and 61 out of 260 aviation fuel stations in the country.

The firm also has upstream presence with 26 assets in nine countries such as Russia, Brazil, Mozambique, the UAE, Indonesia, Australia, East Timor, Israel and India. It is also making a foray into city gas distribution and has licences for 37 geographical areas (GAs).