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BPCL Q2 Results: Profit Up 8%, Revenue Rises 29% As Demand For Fuel Improves

BPCL shares were trading 1.16% lower after the quarterly results were announced

Bharat Petroleum’s signage is displayed at a gas station in Mumbai, India. (Photographer: Vivek Prakash/Bloomberg)
Bharat Petroleum’s signage is displayed at a gas station in Mumbai, India. (Photographer: Vivek Prakash/Bloomberg)

Bharat Petroleum Corp. Ltd.’s profit rose in the second quarter on improving demand for auto fuels as India continued to reopen the economy gradually.

Net profit increased 8% quarter-on-quarter to Rs 2,247 crore in three months ended September, according to an exchange filing on Thursday. That compares with the Rs 1,176-crore consensus estimate of analysts tracked by Bloomberg.

Revenue rose 29% sequentially to Rs 50,146 crore. Analysts had estimated Rs 51,833 crore. Other income declined 3.5% to Rs 572 crore.

BPCL’s revenue was aided by recovering demand. Petrol witnessed consumption rose 3.3% year-on-year in September. Diesel still recorded a decline of 6%, although it’s lower than 20.7% contraction in August. As economic activity improves, diesel consumption is also expected to revive soon.

Despite a fall in spreads for gas oil, aviation turbine fuel and liquid petroleum gas, BPCL reported gross refining margin at $3.19 a barrel in the second quarter. Analysts had expected $2.3 a barrel.

The brent crude averaged $43.1 a barrel during the quarter compared with $34 in the preceding three months.

BPCL shares were trading 1.16% lower after the quarterly results were announced, compared with a 0.60% drop in the benchmark Nifty 50.