New Delhi: Despite grappling with dynamic geopolitical shifts and volatile crude oil prices, state-owned oil marketing companies (OMCs) have emerged victorious, delivering a stellar financial performance in the fiscal year 2023-24. The OMCs not only ensured the availability of fuel at affordable rates, maintaining one of the lowest fuel price inflations globally in India, but also rewarded shareholders’ trust with commendable annual results.
However, recent media reports have selectively focused on comparing the financial performance from Q4 2024 to Q4 2023, painting an abysmal picture and downplaying the overall annual performance of the OMCs. Parameters such as record-breaking throughputs, exceptional capex utilization, and successful project completions have been disregarded, rendering the reportage unjust and biased.
The combined profit of OMCs for FY 2023-24 soared to Rs 86,000 crore, marking a remarkable turnaround from the exceptionally challenging previous fiscal year. HPCL reported a record net profit of Rs 16,014 crore for the full fiscal, compared to a loss of Rs 6,980 crore in the preceding year. Similarly, IOCL achieved historical milestones with its best-ever refinery throughput, sales volume, and net profit.
BPCL’s profit after tax for FY 2023-24 surged to ₹26,673 crores, nearly 13 times higher than the previous fiscal year. Moreover, the company’s planned capital outlay of ₹1.7 lakh crores over 5 years under ‘Project Aspire’ underscores its commitment to generating long-term value for shareholders.
The markets have responded positively to the robust financial results, with BPCL and HPCL share prices witnessing an uptick post-announcement. Analysts have also acknowledged the performance, with many issuing buy recommendations, validating the OMCs’ annual performance and outlook for the current fiscal year.