One of India's biggest oil marketing companies saw its share price leap higher this week, as positive quarterly results cheered investors. Bharat Petroleum Corporation Ltd (BPCL) gained nearly 5% on both leading exchanges after announcing earnings for the January-March period on Thursday.
The oil refiner and fuel retailer posted a net profit of Rs 4,789 crore for the fourth quarter of the fiscal year 2023-24, marking a 30% annual drop attributable mainly to weaker refining margins and pre-election fuel price cuts earlier in the year. Revenue for the three months was relatively flat at Rs 1.32 lakh crore.
While profit declined from the prior year's corresponding quarter, BPCL's full-year numbers painted a far brighter picture. Net income for the full fiscal swelled to a record Rs 26,858 crore, compared to just over Rs 2,100 crore in the previous 12 months, reflecting robust energy demand and price realizations over the past year.
The board of directors also approved a 1-for-1 bonus share issue for existing investors, a move likely to enhance shareholder value in the months ahead. Analysts view the Q4 performance as solid in the context of external headwinds, suggesting the company's underlying business fundamentals remain robust. The upbeat results and dividend news cheered shareholders, driving BPCL's stock price noticeably higher on Friday. Investors will be hoping this momentum sustains as the energy sector navigates ongoing volatility in commodity markets.
