According to a note from the Ministry of Petroleum and Natural Gas, state-owned oil marketing companies Indian Oil (NS:IOC), Bharat Petroleum (NS:BPCL), and Hindustan Petroleum (NS:HPCL) not only ensured the availability of fuel at affordable rates in 2023-24, with India experiencing one of the lowest fuel price inflations globally, but also delivered an exceptional annual performance, rewarding shareholders’ trust.
The combined profit of the three oil marketing companies for the fiscal year 2023-24 reached Rs 86,000 crore, a remarkable 25-fold increase compared to the previous fiscal year’s challenging conditions, the note highlights.
In FY 2023-24, HPCL reported a record net profit of Rs 16,014 crore, bouncing back from a loss of Rs 6,980 crore in the prior year. Indian Oil Corporation achieved historical highs in refinery throughput, sales volume, and net profit.
BPCL’s profit after tax for FY 2023-24 amounted to Rs 26,673 crores, nearly 13 times higher than the previous fiscal year. The company’s commitment to creating long-term shareholder value is underscored by its planned capital outlay of 1.7 lakh crores over 5 years under ‘Project Aspire,’ the note emphasizes.
Following the announcement of results, both BPCL and HPCL saw their share prices rise, reflecting positive market sentiment. Analysts have also taken note of their performance, with many issuing buy recommendations, validating their strong annual performance and outlook for the current fiscal year.
The note highlights the government’s approach over recent years, allowing OMCs the right mix of freedom and accountability. While maintaining an arm’s length distance from their business decisions, the government fully supports and encourages ambitious plans aligned with the vision of Viksit Bharat, 2047.
