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BPCL shares slipped over 1 per cent to Rs 313 today after the company posted a weaker-than-expected set of Q4 numbers. Net profit for the Q4 FY25 quarter fell 8 per cent year-on-year to Rs 4,392 crore, while revenue dropped 4 per cent to Rs 1.26 lakh crore.
That's not all. The refining margin—a key profitability metric—nearly halved from last year. Add in losses from subsidised LPG sales, and the earnings miss didn't surprise anyone. Still, the Rs 5 per share final dividend provided some comfort, helping the stock avoid a sharper fall.
What BPCL does
Bharat Petroleum Corporation (BPCL) is one of India's top oil marketing companies. It refines crude oil and sells petrol, diesel, LPG, and aviation turbine fuel. It runs major refineries in Mumbai, Kochi and Bina, contributing around 15 per cent of India's total refining capacity.
What's moving the stock?
-
Q4 profit dipped
8 per cent YoY to Rs 4,392 crore
-
Revenue slid
4 per cent to Rs 1.26 lakh crore
-
GRM (gross refining margin)
fell to $6.82/barrel in FY25, from $14.14 last year
-
Dividend of Rs 5/share
declared
- Stock down 1.2 per cent today, currently trading at Rs 313.05
Despite the dip in profit, the stock held up reasonably well thanks to the dividend and hopes of stable demand.
What dragged the numbers?
1. Refining under pressure: BPCL's refining margins took a beating. Global oil price fluctuations and lower product cracks squeezed profitability.
2. LPG subsidy impact: As a government-run firm, BPCL continues to sell LPG at subsidised prices, which dented margins in this segment.
3. Lower inventory gains: Unlike previous quarters, BPCL saw lower benefits from inventory valuation changes this time around.
How it stacks up against peers
| Company | Price (Rs ) | Dividend yield ( per cent) | P/E |
|---|---|---|---|
| BPCL | 313.05 | 6.68 | 10 |
| HPCL | 393 | 5.34 | 12 |
| IOC | 143 | 8.39 | 16.7 |
What Value Research ratings say
BPCL scores well in Value Research's stock rating system:
-
Quality:
7/10
-
Growth:
6/10
-
Valuation:
8/10
- Momentum: 5/10
Final word
BPCL's Q4 wasn't a disaster, but it wasn't a celebration either. Investors betting on bumper earnings were left disappointed, especially with refining margins normalising. Still, a consistent dividend and strong one-year returns show the company isn't out of fuel yet.
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Disclaimer: This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
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