State-run Bharat Petroleum Corporation (BPCL) reported a 21.45% fall in consolidated net profit to about ₹4,863 crore for the July–September quarter, as losses on selling fuel below market rates outweighed better refining margins, The Economic Times reported.
The company had earned ₹6,191.5 crore in the same quarter last year.
Selling below cost
State-owned oil marketing companies have been selling petrol, diesel and LPG below market rates, which has squeezed BPCL's marketing margins. In a regulatory filing, the company said its lower profit was mainly due to suppressed marketing margins on certain petroleum products, partly offset by higher refining margins.
Its cumulative under-recoveries on LPG, the losses from selling cooking gas below cost, stood at ₹17,334.40 crore on September 30. That is up from ₹12,318.52 crore on March 31, an increase of about ₹5,000 crore in six months.
Revenue up, costs down from last quarter
Consolidated revenue from operations rose 29.7% to ₹1,57,818 crore, from ₹1,21,605 crore a year earlier.
Total expenses for the quarter were about ₹1.52 lakh crore, down from ₹1.66 lakh crore in April–June but up from ₹1.15 lakh crore a year ago.