The net profit of state-owned BPCL zoomed to Rs 10,664 crore in the June quarter as a fall in oil prices helped to turn around fuel marketing margins.

The PSU had reported a net loss of Rs 6,147.94 crore in the same period last year, according to a company filing with the stock exchanges.

Vetsa Ramakrishna Gupta, director (finance) said: “On a sequential basis also, the profit in Q1 FY 23-24 is higher compared with a net profit of Rs 6,478 crore in Q4 FY 22-23. The excellent financial results are mainly attributable to stellar performance in refining and marketing businesses supported by a favourable crude oil price regime”

On a standalone basis, BPCL has reported revenue from operations of Rs 1,28,257 crores in the first quarter against Rs 1,38,390 crore a year ago.

Margins on petrol and diesel turned positive following the softening of international oil prices in the June quarter. The rates were not revised, and the PSU refiners recouped losses they incurred last year.

Crisil view

Oil marketing companies are set to book a record pre-tax profit of at least Rs 1 lakh crore this fiscal amid higher retail prices in the domestic market and stable but considerably low crude prices overseas, rating agency Crisil said in a report.

Crude price has fallen more than 30 per cent this fiscal so far from the year-ago period, yet oil companies have not reduced retail prices which have been unchanged since May 2022. Oil marketing companies (OMCs) may see operating profit rebounding to Rs 1 lakh crore this fiscal compared with an average of Rs 60,000 crore between fiscals 2017 and 2022, and thrice of the last fiscal’s low of Rs 33,000 crore, Crisil said.

With inputs from PTI