FINANCIAL PERFORMANCE ASSESSMENT OF MAHARATNA OIL & GAS CPSEs: A CASE STUDY OF BPCL

Abstract

The financial performance of Maharatna oil and gas Central Public Sector Enterprises (CPSEs) plays a crucial role in India's economic and energy security framework. This study assesses the financial performance of Bharat Petroleum Corporation Limited (BPCL) over a ten-year period (2011–2021), analyzing key financial indicators such as Operating Profit Margin, Net Profit Ratio, Return on Assets (ROA), Return on Equity (ROE), Return on Capital Employed (ROCE), Earnings per Share (EPS), and Dividend per Share (DPS). The research employs a quantitative approach using financial ratio analysis to evaluate BPCL’s profitability, efficiency, and sustainability. The findings indicate fluctuating profitability trends influenced by global oil price volatility, regulatory changes, and macroeconomic conditions. BPCL demonstrated strong returns on equity and capital employed, alongside a relatively high dividend payout, reinforcing investor confidence. However, market uncertainties and external shocks impacted its profit margins over the years. The study provides insights into BPCL’s financial stability and highlights the challenges faced by Maharatna oil CPSEs in maintaining consistent profitability. The results contribute to understanding the financial health of public sector oil enterprises and serve as a reference for policymakers, investors, and industry stakeholders.