BPCL declares Q4 results: shares shine

The largest state owned natural gas processing and distribution company BPCL on May 26 has declared its Q4FY16 results, wherein for the March quarter the company has reported a net profit of Rs 2549 crores. Net profits have decreased by 11 per cent as compared to Q4FY15. EBITDA for the period stands at Rs 3489.58 crores. Total income from operations stands at 44197 crores for the quarter as against Rs 51346 crore for the corresponding period of the previous fiscal.

For the full fiscal 2015-16, the company has reported a net profit of Rs 7432 crore. Net profit has increased by 46 per cent. In the previous financial year, it had a net profit of Rs 5085 crores. EBITDA has increased by 33 per cent and stands at Rs 11056 crores for the year.

On a CAGR basis, EBITDA and net profits for the period of 3 years have grown by 17 and 35 per cent respectively. Low crude oil prices have been the reason for such double digit yearly profits.

Bharat Petroleum Corporation Limited is an Indian company with business interests in marketing, exploring and refining of crude oil. It has four refineries and its products include LPG, diesel, petrol, kerosene, aviation fuel, bitumen, naphtha, auto lubes, lubricants, grease and oil. 

The company has been fully compensated for the loss it makes on selling domestic cooking gas LPG and PDS kerosene at subsidised rates. It has received Rs 1598.49 crore from the government as fuel subsidy and another Rs 198.01 crore from upstream firms like ONGC.

Subject to approval, the company has recommended issue of bonus shares i.e. one new bonus equity share of Rs 10 each for every existing one fully paid up equity share. (1:1)

The shares on Friday have increased over 5 per cent on an intra – day basis and are trading at Rs 976. Good yearly figures and bonus issue have boosted the share prices.