15-Feb-2024
2 mins read
On February 14, Bharat Petroleum Corporation Limited (BPCL), one of India’s leading state-run oil marketing companies, witnessed a significant transaction involving the sale of approximately 68.4 lakh shares, constituting a 0.3 per cent stake in the company. This move was orchestrated through a block deal, indicating a strategic shift and a potential realignment of interests within the company’s shareholder base. The shares were offloaded by the BPCL ESPS Trust in alignment with the BPCL Employee Stock Purchase Scheme 2020 and the Securities and Exchange Board of India (Sebi) regulations pertaining to Share Based Employee Benefits and Sweat Equity, 2021.
Stock Performance
Following the announcement of the block deal, BPCL’s stock experienced an uptick, quoting at Rs 595.50 on the National Stock Exchange (NSE) as of 9:20 am, marking a 1.9 per cent increase from its previous close. This positive momentum is part of a broader trend observed over the current calendar year, with the stock gaining over 30 per cent. Analysts attribute this impressive performance to the stabilisation of crude oil prices, which has subsequently led to improved marketing margins for the company.
Financial Highlights
BPCL’s financial health appears robust, as evidenced by its latest quarterly report. The company reported a 73 per cent surge in net profit for the third quarter, with the standalone net profit rising to Rs 3,393 crore for the quarter ending December 31, compared to Rs 1,960 crore in the same period the previous year. This financial upswing is largely due to strong refining and marketing margins. Moreover, BPCL boasted an average gross refining margin of $13.3 per barrel for the December quarter. While revenue from operations remained fairly stable at Rs 1.3 lakh crore, the company managed to reduce expenses by 4.5 per cent.
The strategic sale of BPCL shares through a block deal, the company’s strong financial performance, and the optimistic market outlook collectively paint a promising picture for BPCL. As India continues to emerge as a key player in the global fuel demand market, companies like BPCL are well-positioned to capitalise on this growth, offering both challenges and opportunities in the evolving energy landscape.