State-owned Bharat Petroleum Corp on Tuesday reported a fall of 8% in its consolidated net profit for the last quarter of the financial year 2024-25 at Rs 4,391.83 crore from Rs 4,789.57 crore in the same period the previous fiscal. The decline in profit can be attributed to weaker gross refining margins and under recoveries made on the sale of LPG (liquified petroleum gas).
The company’s average gross refining margin (GRM) for the year ended March 31, 2025 is $6.82 per barrel down from $14.14 per barrel in FY24.
On a sequential basis, however, the net profit increased by 15.4% from Rs 3,805.94 crore in Q3FY25. The quarterly performance is driven by improved refining and marketing margins, strong sales growth, and operational excellence, the company said. BPCL registered a gross refining margin of $9.20/bbl in the current quarter against a GRM of $5.60/bbl in Q3FY25.
The company’s revenue from operations during the quarter under review declined by 4% on year to Rs 1.27 lakh crore.
In the overall financial year 2024-25, the state-owned OMC registered a fall of as much as 50% in its net profit to Rs 13,336.55 crore compared to Rs 26,858.84 crore in FY24.
The company’s operating margin fell to 4.13% during the last quarter of FY25 compared with 5.26% in the same period a year ago. For FY25 the operating margin stood at 3.27% against 6.87% in FY24.
The company’s consolidated domestic market sales grew by 1.8% to 13.42 million tonnes in Q4FY25 from 13.18 million tonnes in Q4FY24.
Refinery throughput also increased to 10.58 million tonnes during the period from 10.36 million tonnes in Q4FY24. In the financial year 2024-25 the company achieved its highest ever throughput of 40.51 million tonnes against 39.93 million tonnes in FY24.
The company’s Board of Directors has recommended a final dividend of Rs 5/- per equity share of face value of Rs 10/-each.
The company has set the goal for its capex for 2025-26 at around Rs 19,000 crore, it has earlier told FE. It also plans to increase the share of petrochemicals in its business mix to 8% of its total portfolio by 2028-29 from the current 2%.
Just recently, the company also entered into a joint venture agreement with Sembcorp to explore renewable energy and green hydrogen projects across India. The joint venture will also consider projects in green ammonia production and bunkering, emissions reduction for port operations and other emerging green fuel technologies.