Bharat Petroleum Corp Ltd (BPCL) on Friday reported a 24 per cent rise in its September quarter net profit as international oil prices soared to a multi-year high.
Net profit of Rs 3,200.9 crore in July-September was 23.6 per cent higher than Rs 2,589.5 crore a year back, the company said in a statement.
Revenue rose 53.7 per cent to Rs 1.02 lakh crore after global oil prices rose to a multi-year high.
The company did not give reasons for the rise in profits but industry sources said refiners made higher margins as they bought crude oil at a price but by the time they could ship and process it, benchmark fuel rates had gone up.
Since retail rates are benchmarked at prevailing international prices, higher margins are booked.
BPCL said it earned USD 5.11 on turning every barrel of crude oil into fuel during April-September as compared to USD 3.19 a barrel gross refining margins (GRMs) in the same period a year back.
The firm did not give GRMs of the second quarter.
BPCL sold 9.91 million tonnes of petroleum products in Q2FY22, while refinery throughput of Mumbai and Kochi refineries were 7.16 million tonnes.
Commenting on financial performance, V R K Gupta, Chief Financial Officer said, "With normalisation of business and fuel demand rising, we are witnessing robust growth in overall petroleum products sales."
"As international crude prices surge, we have seen good growth in gross refining margins," he said.
The growth in revenue was primarily due to the lower base of last year, which was impacted by Covid-19 restrictions.
"We believe rest of the year will have better sentiments prevailing as vaccination picks up and businesses return to pre-Covid levels," he added.