Bharat Petroleum Corporation Limited (BPCL) shares are set to be in the spotlight on October 28, 2024, following the company’s announcement of a joint venture (JV) agreement with Oil India to develop city gas distribution (CGD) projects in Arunachal Pradesh. The JV agreement, approved by BPCL’s board on October 25, 2024, is a significant step toward expanding the company’s footprint in the gas distribution sector. The agreement will be finalized after receiving necessary regulatory approvals.
As of 9:19 am the shares were trading 2.09% higher at ₹312.70
In addition to this strategic development, BPCL reported a 20% quarter-on-quarter (QoQ) decline in net profit for the second quarter of FY25, with net profit falling to ₹2,397 crore. The company’s revenue also declined by 9% QoQ, reaching ₹1,02,791 crore.
Key Q2 FY25 Performance Highlights:
- EBITDA: Fell by 20% QoQ to ₹4,547 crore
- Operating Profit Margin (OPM): Decreased by 50 basis points (bps) to 4.4%
BPCL’s performance in the second quarter reflects a challenging environment, with declines in both profit and revenue. However, the joint venture with Oil India signals the company’s commitment to growth in the city gas distribution sector, particularly in underserved regions like Arunachal Pradesh.
Investors will be closely monitoring the impact of this JV and the company’s future initiatives in expanding its gas distribution network.
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