Two public sector Oil companies received notice from the Central Pollution Control Board (CPCB) for not installing the pollution control system at the petrol pump.
Both the companies, Indian oil corporation and Bharat Petroleum corporation ltd with a market capitalization of Rs. 1,27,500 cr and Rs 75,110 cr respectively opened their Monday trading session on a negative note. IOC shares opened in red making a loss around 1.33 % and even BPCL company’s share opened lower in today’s trading session making a loss around 1%
Such a negative opening was observed when both the companies on 20 October received a monetary penalty from CPCB for not installing Vapour Recovery Stations (VRS) at their petrol refuelling station within the timeline prescribed by the supreme court.
These VRS tends to prevent petrol vapours from escaping to the atmosphere,as these vapours contain cancer substances like benzene,toluene and xylene. In 2016 the companies were ordered to install these VRS at the fuel stations.
In the exchange filing by IOC said that it had received a monetary penalty amounted 1cr from CPCB for not installing the VRS at their retail outlets in the National Capital Region (NCR) at the prescribed time given by the supreme court.Furthermore the company mentioned that there is no impact on the operation and other activities of the company,however the financial implication would be limited to compensation amount of Rs 1 cr.
In the separate filing with exchange BPCL said it has received a notice to pay environmental compensation of Rs 2 cr to CPCB for non installation of VRS at the fuel station within the prescribed time given by the supreme court. Furthermore the company also mentioned that they are examining the notice and they would give an appropriate answer for the notice.
Looking at the financials of IOC,the company has increased its revenue by 42.83 percent on YoY and it has recorded a revenue of Rs 2.25 lakh cr in the last quarter.
The company has recorded a consolidated net profit of Rs. 14,436.96 cr during the same period.Coming into the important ratios,Return on Equity (RoE) in FY 22-23 was at 8.57 percent and Return on Capital Employed (RoCE) was 8.43 percent during the same period and the company as reasonable dividend yield of 3.31 percent.
Coming to the financials of BPCL,it recorded a revenue of Rs. 1,28,263 cr in Q1 FY24 and net profit of Rs.10,644 cr. Looking at the important ratios of the company,Return on Equity (RoE) is 4.04 percent and Return on Capital employed is 5.89 percent during FY 22-23.
Headquartered in New Delhi, Indian Oil Corporation is a public-sector company having presence within as well as outside India. BPCL is the second largest Government-owned downstream oil producer and operates three refineries in Bina,Kochi and Mumbai.
Written By Vaibhav Patil
