On the back of better refining margins and higher subsidy from the Government, Bharat Petroleum Corporation Ltd (BPCL) on Monday reported a 33 per cent increase in its net profit for the fourth quarter ended March 31, 2011.

Net profit stood at Rs 935 crore against Rs 703 crore in the corresponding quarter last year.

Total income stood at Rs 48,311.46 crore, a growth of 20.5 per cent over Rs 40,071.55 crore in the corresponding quarter last year.

The company said it processed 5.58 mt of crude oil in the fourth quarter, slightly lower than the 5.69 mt a year earlier.

According to the company, Gross Refining Margin (GRM) for the quarter stood at $6.94/barrel against $3.73 in the corresponding quarter last year.

The Mumbai refinery's GRM in the fourth quarter was $5.76/barrel ($2.75) while the Kochi refinery's GRM was $8.70/barrel ($5.09).

On account of selling diesel, kerosene and cooking gas at prices set by the Government, BPCL incurred a revenue loss which is partly compensated by the Government and upstream companies through discounts on crude oil sales.

The company had a total revenue loss of Rs 17,963 crore during the 2010-11 fiscal, on account of the discounted fuel sales. Of the total revenue loss, the company got cash subsidy of Rs 9,419 crore from the Government during the fiscal against Rs 5,262 crore in the previous fiscal. Upstream companies gave discounts of Rs 6,960 crore up from Rs 3,630 crore a year earlier.

The board of directors has recommended a dividend of Rs 14 a share of Rs 10 each for 2010-11.

BPCL's scrip closed marginally down on the BSE, at Rs 627.35 on Monday.

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