BPCL Share Price Top Nifty50 Gainer, Up 4%; Proposes Issuance of Bonus Shares


by Sandip Das on 10 May 2024,  3 min read


The stock price of Bharat Petroleum Corporation Limited (BPCL) witnessed a surge of over 3 percent and was the top Nifty50 gainer during the morning trading session on May 10, 2024, following the company’s announcement of its financial results for the fourth quarter.

On May 9, BPCL reported a consolidated net profit of Rs 4,789.57 crore for the final quarter of the fiscal year 2023-24, marking a decrease of 30 percent compared to the corresponding period of the previous year.

In the same quarter last year, this state-owned oil retailer recorded a profit of Rs 6,870.47 crore. The decline in BPCL’s profitability can be attributed to several factors, including weakening margins and the volatility observed in crude oil prices throughout the quarter. Notably, in mid-March, BPCL, alongside other Oil Marketing Companies (OMCs), implemented a reduction of diesel and petrol prices by Rs 2 per litre nationwide, a move that likely impacted the company’s profit margins.

Despite this decline in profitability, BPCL’s revenue from operations experienced only a marginal decrease, reaching Rs 1.32 lakh crore in the quarter ended March 31, compared to Rs 1.33 lakh crore in the same period the previous year.

Furthermore, BPCL’s board has proposed the issuance of bonus shares at a ratio of 1:1, which means one new bonus equity share of Rs 10 each would be offered for every existing fully paid-up equity share of Rs 10 each, pending the approval of shareholders through postal ballot. The company specified that Saturday, June 22, 2024, has been set as the record date to ascertain the eligibility of shareholders to receive these bonus shares.

Also read: SBI Q4 Net Profit Jumps 24% to Rs 20,698 cr; Declares Dividend of Rs 13.70 Per Share

Additionally, the board has recommended a final dividend of Rs 21 per equity share (pre-bonus) for the fiscal year 2023-24, which translates to a final dividend of Rs 10.5 per share (post-bonus).

In terms of operational performance, BPCL’s earnings before interest, tax, depreciation, and amortization (EBITDA) for the fourth quarter amounted to Rs 7,884.14 crore, marking a decline from Rs 10,526.73 crore reported in the same period last year.

BPCL also provided insights into its average gross refining margin (GRM) for the fiscal year 2023-24, which stood at $14.14 per barrel, a decrease from $20.24 per barrel recorded during the corresponding period in the previous year, as stated in a press release by the company.

Looking towards the future, G. Krishnakumar, the Chairman and Managing Director of BPCL, articulated the company’s strategic initiatives, including plans to enhance refining capacity to 45 Million Metric Tonne Per Annum (MMTPA) and the addition of 4,000 new fuel stations by the fiscal year 2028-29. Furthermore, BPCL aims to invest in various growth avenues such as the establishment of petrochemical facilities in Bina and Kochi, tripling its gas footprint by fiscal year 2028-29, and capitalizing on economic opportunities in the realm of Green Businesses.

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Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk. Please consult with a financial advisor before making any investment.

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