Annual Report 2008-2009 - Bharat Petroleum

Company Performance
During the year 2008-09, BPCL’s Mumbai Refinery achieved a crude throughput of 12.26 MMT as compared to
12.75 MMT achieved during the last year. Kochi Refinery also saw the crude throughput decline to 7.68 MMT in
2008-09 from 8.20 MMT in 2007-08. The lower throughputs for the two refineries were on account of the planned
shutdowns during the year. However, the market sales of the company increased from 25.79 MMT in 2007-08 to
27.16 MMT in the current year.
FINANCIAL HIGHLIGHTS
Rs. in Crores
2008-09 2007-08
Sales Turnover – Gross 145,392.07 121,684.07
Gross Profit before Depreciation, Interest and Tax 4,246.01 4,367.97
Interest 2,166.37 672.47
Depreciation & amortisation 1,075.53 1,098.21
Profit before tax 1,004.11 2,597.29
Provision for Taxation – Current 490.00 883.90
Provision for Fringe Benefit Tax 13.25 15.30
Provision for Taxation – Deferred (242.13) 110.80
Short provision for taxation in earlier years provided for 7.09 6.73
Net Profit 735.90 1,580.56
Amount available for disposal 735.90 1,580.56
The Directors propose to appropriate this amount as under:
Towards Dividend:
Final (proposed) Dividend - Rs. 7 per share 253.08 144.62
Towards Corporate Dividend Tax 31.45 9.16
For transfer to Debenture Redemption Reserve 300.00 –
For transfer to General Reserve 75.00 1,426.78
Balance carried to Balance Sheet 76.37 –
Summarised Cash Flow Statement :
Cash Flows:
Inflow/(Outflow) from operations 6,212.34 417.13
Inflow/(Outflow) from investing activities (9,908.75) (3,553.95)
Inflow/(Outflow) from financing activities (2,285.32) (197.74)
Net increase/(decrease) in cash & cash equivalents (5,981.73) (3,334.56)
BPCL’s sales turnover for 2008-09 at Rs. 145,392.07
crores was higher by 19.48% as compared to the
turnover of Rs. 121,684.07 crores recorded in
2007-08. However, the profit before tax for the year stood at
Rs. 1,004.11 crores which represented a reduction of
61.34% over the previous year’s level of Rs. 2,597.29
crores. After providing for tax, (including deferred tax
and fringe benefit tax) of Rs. 268.21 crores, as against
Rs. 1,016.73 crores during the last year, the profit after
tax for the year stood at Rs. 735.90 crores, showing a
decrease of 53.44% over the level of Rs. 1,580.56 crores
in 2007-08. The fall in the profitability is attributable to
the adverse impact of the volatile prices of crude oil and
finished products during the year and the fluctuations in
foreign exchange rates. Besides, the interest costs for
the year increased significantly on account of higher
borrowings for meeting the working capital requirements
during the year.
Annual Report 2008-2009 9