InvestorQ : Why did BPCL report a fall in sales revenues in Sep-20 quarter? How did BPCL perform on the profits front?
Arya Nanda made post

Why did BPCL report a fall in sales revenues in Sep-20 quarter? How did BPCL perform on the profits front?

Answer
image
Anjana Aiyar answered.
7 months ago
Follow

With weal global oil prices, top pressure was inevitable. For the quarter ended Sep-20, BPCL reported fall of 12.29% in sales revenues at Rs.66,331.22 crore. This fall in sales is largely on account of lower crude price, which has been constricted by the COVID pandemic.

Let us not turn to the profitability of BPCL. For the Sep-20 quarter, the operating profits were up 118.52%, more than doubling to Rs.4,002 crore while net profits were up by a healthy 58.4% at Rs.2,589 crore on the back of better operating metrics and superior cost management measures adopted.

Let us now look at the margin story. OPM was up more than 360 bps at 6.03% on the strength of favorable gross refining margins or GRMs and lower input costs. The NPM for the quarter was higher by about 175 basis points at 3.90%, although the figures are still too low in absolute terms.

BPCL saw cash accretion of Rs.963 crore in the quarter taking its cash balance as of September 30 to Rs.1500 crore. BPCL benefited by the virtual halving of raw material prices in the quarter as well as a sharp drop in the finances costs that helped in a tough quarter.

0 Views