State-owned Bharat Petroleum Corp Ltd (BPCL) today reported net profit of Rs 5,034.79 crore for the July-September quarter, as against Rs 3,229.27 crore loss in the year-ago period, after the government released part of the fuel subsidy.
BPCL had in the April-June quarter posted a net loss of Rs 8,836.75 crore because the government had not paid any subsidy for selling diesel and cooking fuel below cost.
It said it has got Rs 7,280.30 crore compensation from the government for the first half of current fiscal. This helped the company post net profit of Rs 5,034.79 crore in July-September quarter. But for the first half (April-September) of the current fiscal, it has reported a net loss of Rs 3,801.96 crore.
BPCL and other state-owned fuel retailers Indian Oil and Hindustan Petroleum Corp Ltd (HPCL) sell diesel, domestic LPG and kerosene at government controlled rates which are way lower than cost. The losses they incur are met through a combination of cash subsidy from the government and assistance from upstream firms like ONGC.
Despite the subsidy and Rs 7,239.40 crore received by ONGC, GAIL and Oil India, BPCL said it had a net under- recovery or revenue loss of Rs 6,133.39 crore in the April-September period.
Net sales rose to Rs 56,859.52 crore in July-September quarter from Rs 42,281.90 crore in the same period last fiscal.
BPCL said its refineries processed 5.94 million tons of crude oil in the second quarter, up from 5.58 million tons a year ago. Sales rose to 7.77 million tons from 7.04 million tons.