Companies

BPCL net profit rises 40 per cent during September quarter to Rs1,708 crore on tax reversal

Our Bureau Mumbai | Updated on November 08, 2019 Published on November 08, 2019

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State-run oil refiner Bharat Petroleum Corporation Limited (BPCL) posted a 40.18 per cent jump in its July-September quarter net profit to Rs 1,708.45 crore from Rs 1,218.71 crore a year earlier.

The September quarter net profit was boosted by a one-time tax reversal of Rs 580.33 crore, the company said in a filing to the stock exchange.

A similar tax reversal of Rs 163.34 crore was accounted in the April-June quarter.

BPCL's total revenue during the second quarter dropped 8.98 per cent to Rs 75,927.91 crore from Rs 83,422.83 crore a year ago.

BPCL processed 7.66 million tonnes (mt) of crude during the second quarter of FY20 from 7.57 mt a year earlier. The refiner sold 10.25 mt of petroleum products during the second quarter from 10.08 mt during the same period last year.

The average gross refining margin (GRM) of BPCL for the first half of FY20 dipped to $3.10 per barrel compared to $ 6.52 per barrel during April-September last year. GRM is what a refiner earns by turning a barrel of crude oil into refined products.

“During the period April - September 2019, favourable judgements were received from Income Tax Appellate Authorities on various Income Tax issues. Accordingly, Rs743.67 Crores being tax provision for earlier years no more required has been recognized in "Short/(Excess) provision of earlier years", BPCL said.

Published on November 08, 2019
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