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Bharat Petroleum Corporation Ltd

BSE: 500547 | NSE: BPCL ISIN: INE029A01011
Market Cap: [Rs.Cr.] 65,583.36 Face Value: [Rs.] 10
Industry: Refineries

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Director's Report

The Board of Directors is pleased to present the 62nd Annual Report on the performance of Bharat Petroleum Corporation Limited (BPCL) for the year ended 31st March, 2015.


BPCL’s Refineries at Mumbai and Kochi, together with its subsidiary company, Numaligarh Refinery Limited (NRL) and including 50% throughput of Joint Venture Company, Bharat Oman Refineries Limited (BORL), aggregated a throughput of 29.27 Million Metric Tonnes (MMT) in 2014-15, in comparison to 28.69 MMT in 2013-14. The BPCL Group generated market sales of 34.95 MMT during 2014-15, as compared to 34.31 MMT in the previous year. The group’s exports of petroleum products in 2014-15 stood at 2.22 MMT as against 3.06 MMT in 2013-14.

The group recorded a Gross Revenue from Operations of Rs 2,58,731.09 crores in 2014-15, as compared to Rs 2,76,019.55 crores achieved in 2013-14. The Profit after Tax for 2014-15 was Rs 5,082.01 crores, as against Rs 4,052.98 crores in the previous year. After setting off the minority interest, the Group earnings per share stood at Rs 66.47 in the current year, up from Rs 54.08 in 2013-14.


2014-15 2013-14
Physical Performance
Crude Throughput (MMT) 29.27 28.69
Market Sales (MMT) 34.95 34.31
Financial Performance Rs Crores
Gross Revenue from Operations 2,58,731.09 2,76,019.55
Less: Excise Duty (16,132.59) (11,598.49)
Net Revenue from Operations 2,42,598.50 2,64,421.06
Profit before Depreciation, Finance Costs and Tax 11,897.62 10,758.74
Finance Cost 1,180.47 1,982.14
Depreciation & amortization expense 3,026.68 2,610.92
Profit before tax 7,690.47 6,165.68
Provision for taxation – Current (Net of MAT Credit Entitlement) 2,522.44 2,554.43
Profit after Current Tax 5,168.03 3,611.25
Provision for taxation – Deferred (Asset)/Liability 95.55 (355.31)
Short /(Excess) provision for Taxation in earlier years provided for (9.53) (86.42)
Net Profit 5,082.01 4,052.98
Minority Interest 275.44 142.30
Net Income of the group attributable to BPCL 4,806.57 3,910.68
Group Earnings per share attributable to BPCL (Rs) 66.47 54.08


2014-15 2013-14
Physical Performance
Crude Throughput (MMT) 23.36 23.35
Market Sales (MMT) 34.45 34.00
Rs Crores
Financial Performance
Gross Revenue from Operations 2,53,254.86 2,71,051.81
Less: Excise Duty (15,167.96) (10,976.82)
Net Revenue from Operations 2,38,086.90 2,60,074.99
Profit before Depreciation, Finance Costs and Tax 10,514.63 9,554.88
Finance Cost 583.10 1,359.08
Depreciation & amortization expense 2,516.02 2,246.82
Profit before tax 7,415.51 5,948.98
Provision for Taxation – Current (Net of MAT Credit Entitlement) 2,010.00 2,275.00
Provision for Taxation – Deferred 347.36 (294.82)
Short/(Excess) provision for taxation in earlier years provided for (26.36) (92.08)
Net Profit 5,084.51 4,060.88
Balance brought forward 500.00 500.00
Amount available for disposal 5,584.51 4,560.88
The Directors propose to appropriate this amount as under:
Towards Dividend:
Final (proposed) Dividend 1,626.94 1,229.24
Towards Corporate Dividend Tax 294.27 196.58
For transfer to Debenture Redemption Reserve 194.35 196.84
For transfer to General Reserve 2,968.95 2,438.22
Balance carried to Balance Sheet 500.00 500.00
Summarized Cash Flow Statement :
Cash Flows:
Inflow/(Outflow) from operations 18,194.41 8,404.10
Inflow/(Outflow) from investing activities (7,909.12) (4,285.89)
Inflow/(Outflow) from financing activities (9,132.26) (6,243.73)
Net increase/(decrease) in cash & cash equivalents 1,153.03 (2,125.52)

Company Performance

During the year 2014-15, the crude throughput achieved by BPCL’s refineries at Mumbai and Kochi was 23.36 MMT, as against 23.35 MMT recorded in 2013-14. The market sales of the Company increased to 34.45 MMT in 2014-15, from 34.00 MMT in 2013-14, thus registering a growth of 1.32%.

BPCL’s Gross Revenue from Operations for 2014-15 was Rs 2,53,254.86 crores, 6.57% lower than the previous year’s revenues of Rs 2,71,051.81 crores. The Profit before Tax generated for the year was Rs 7,415.51 crores, as against Rs 5,948.98 crores in 2013-14. The Profit after Tax for the year stood at Rs 5,084.51 crores, as against Rs 4,060.88 crores recorded in 2013-14, after providing for tax, (including deferred tax) of Rs 2,331.00 crores, as compared to Rs 1,888.10 crores during the last year. This is the first time in the history of the Company that the net profit has exceeded Rs 5,000 crores in a single financial year.

The earnings per share achieved in 2014-15 was Rs 70.32, as compared to Rs 56.16 in 2013-14. Internal cash generation during the year was higher at Rs 5,989.18 crores, 30% more than the level of Rs 4,585.64 crores in 2013-14. BPCL’s contribution to the exchequer by way of taxes and duties during 2014-15 stood at Rs 51,121.77 crores, as against Rs 43,602.22 crores in the previous financial year. BPCL’s net worth as on 31st March, 2015 was Rs 22,467.48 crores, as compared to Rs 19,458.76 crores at the end of the previous year.


The Board of Directors has recommended a dividend of 225% ( 22.50 per share) for the year on the paid-up share capital of Rs 723.08 crores. The amount of dividend totaling to Rs 1,921.21 crores, inclusive of Rs 294.27 crores for Corporate Dividend Tax on distributed profits, shall be dispensed from the profit after tax for the year.

Transfer to Reserves

The Company proposes to transfer Rs 2,968.95 crores to the General Reserve out of the amount available for appropriation and an amount of Rs 500.00 crores is proposed to be retained as Surplus in the Statement of Profit and Loss.


Borrowings from banks decreased by almost 50% to Rs 6,925.26 crores as at 31st March 2015, from Rs 13,843.68 crores as at 31st March, 2014. Loans from Oil Industry Development Board have increased to Rs 1,049.50 crores as at 31st March, 2015, as compared to Rs 321.25 crores at the end of the previous year. Debentures worth Rs 700 crores issued during the year 2012-13 continue to remain outstanding as on 31st March, 2015. 4.625% US Dollar International Bonds issued during 2012-13ofUSD500Million(equivalentto3,129.54crores) and 3% Swiss Franc International Bonds issued during 2013-14 of CHF 200 Million (equivalent to Rs 1,293.30 crores) remained outstanding as on 31st March, 2015. During the year 2014-15, the Company set up a Medium Term Note (MTN) Program to facilitate the raising of funds on a regular basis from the international debt capital markets, with the aggregate nominal amount of Notes outstanding under the program not exceeding USD 2 billion (or its equivalent in other currencies).

Deposits from Public

During the year, the Company has not accepted any deposits from the public. However, unclaimed matured deposits of Rs 0.08 crores as at the end of the year, pertaining to 21 depositors in the books, are being transferred to the Investor Education and Protection Fund after due dates.

Capital Expenditure

The total Capital Expenditure incurred during the year 2014-15 amounted to Rs 8,494.40 crores, as compared to Rs 5,560.39 crores during the year 2013-14.

C& AG Audit

The Comptroller and Auditor General of India (C&AG) has no comment upon or supplement to the Statutory Auditors’ Report on the Accounts for the year ended 31st March 2015. The letter from C&AG is annexed as Annexure E.


During the year 2014-15, Mumbai Refinery achieved throughput of 12.96 MMT of feedstock (crude oil and other feedstock), as against 13.03 MMT achieved in 2013-14. Mumbai Refinery has achieved this level of throughput, despite having planned shutdown of one of the crude processing units and associated secondary facility during the year. This represents a capacity utilization of 108.0%, as compared to 108.6% in the previous year. The reduction in crude throughput is basically due to the higher captive production of Reformate, which has been, hitherto imported to meet Motor Spirit (MS) demand during 2013-14. During the year, the refinery achieved its highest ever production of MS, High Speed Diesel (HSD) and Lube Base Oils, meeting the demand for MS and HSD complying with Euro-IV quality norms.

The Gross Refining Margin (GRM) for the year stood at USD 3.97 per barrel, as compared to USD 3.95 per barrel realized in 2013-14. The overall gross margin for the refinery in 2014-15 amounted to Rs 2,363 crores, as compared to Rs 2,340 crores in 2013-14. The higher GRM in Mumbai Refinery for the year 2014-15 is attributable to higher distillate yield, better product mix pursuant to commissioning of the Continuous Catalytic Reformer (CCR) Unit and reduction in octroi incurrence partially offset by the impact of the crude-product price volatility.


Kochi Refinery achieved the highest ever crude throughput of 10.40 MMT in 2014-15, as compared to 10.32 MMT in 2013-14. This is the third year in succession that the throughput at the refinery has crossed the 10 MMT mark. The capacity utilization of the refinery during the year was 109.46%, as against 108.65% in the previous year. During the year, Kochi Refinery recorded its best ever production of LPG, Propylene, Euro-III MS, Euro-III HSD and Euro-IV HSD. The GRM for the year was USD 3.17 per barrel amounting to Rs 1,514 crores. The refinery had earned a GRM of USD 4.80 per barrel in 2013-14, amounting to Rs 2,249 crores. The major reasons for lower margin during 2014-15 are lower product cracks and higher inventory valuation loss.

The details of the performance of the Refineries, their activities and future plans are discussed in the Management Discussion and Analysis Report (MD&A).


During the year 2014-15, BPCL’s market sales volume rose to 34.45 MMT, as compared to 34.00 MMT in the previous year. This represented a growth rate of 1.32% over the previous year. BPCL’s market share amongst the public sector oil companies stood at 23.29% as at 31st March, 2015, as compared to 23.50% as at the end of the previous year.

A detailed discussion of the performance of the Marketing function is given in the MD&A.


Integrated Refinery Expansion Project (IREP) at Kochi

The project envisages capacity expansion of Kochi Refinery by 6 Million Metric Tonnes Per Annum (MMTPA) taking it to 15.5 MMTPA and modernisation of processing facilities to produce auto-fuels conforming to Euro-IV/ V specifications. It also envisages refinery residue stream upgradation to value added products.

The project involves a capital outlay of Rs 16,504 crores with expected completion in May, 2016. The project has achieved an overall physical progress of 83.55% with cumulative expenditure of Rs 7,147 crores as on 30th June 2015. Civil, structural and UG piping jobs of units and offsites are nearing completion. The foundations of all major equipments have been completed and all major tenders and orders have been placed. More than 75% of the equipment has been received at site. Mechanical jobs like piping, fabrication, erection and equipment erection are in progress at units and offsites. About 1,000 equipment out of a total of 2,060 have been erected on foundations, which include all three gas turbine generators, crude and vacuum columns, DHDT reactors, VGO and DHDT recycle gas compressors. Electrical and instrumentation jobs have commenced. Package jobs like reactor-regenerator package of FCCU, coke drum structure and coke handling packages, heaters, water packages, utility boilers are progressing at site and a few are nearing completion. The hydrotesting of one out of the two utility boilers has been completed. Two raw water quarries for storage of water from the Periyar River have been commissioned.

A workforce of more than 14,000 labourers has been engaged on a daily basis and works at site progress on a 24x7 basis. Monthly meetings of unions, contractors, and Project Management Consultant (PMC) with the Regional Labour Commissioner help maintain a healthy labour climate. The Government of Kerala continues to provide proactive support to the project and reviews are being held even at the level of the Chief Minister.

Petrochemicals Project

The Board has given approval for diversification into Petrochemicals at an estimated capital cost of Rs 4,588 crores. BPCL plans to produce niche petrochemicals such as Acrylic Acid, Acrylates and Oxo Alcohols, that are predominantly being imported into the country. Such niche products will be produced using Polymer Grade Propylene that will be available on the completion of the IREP project. The major end uses of these chemicals are in paints and coatings, adhesives, plasticisers, solvents and water treatment. The unit is expected to come on stream during the year 2018-19.

Replacement of CDU /VDU at Mumbai Refinery

The project envisages installation of a state-of-the-art integrated Crude and Vacuum Distillation Unit (CDU-4) of 6 MMTPA capacity to improve mechanical integrity, enhance safety and meet environment norms. The approved cost of the project is Rs 1,419 crores.

The overall physical progress of project is 97.2% with cumulative expenditure of Rs 1,171 crores as on 30th June 2015. Pre-commissioning and commissioning activities at site are in progress.

Kota Jobner Pipeline Project:

The project involved laying a 210 km long and 14" dia cross-country pipeline from Kota to Jobner (near Jaipur) for economic transportation of MS/SKO/HSD from BPCL’s Mumbai Refinery as well as BORL’s refinery at Bina. Petroleum and Explosives Safety Organisation (PESO) license has been obtained and the pipeline has been commissioned on 31st March, 2015 with an expenditure of Rs 230 crores as on 30th June, 2015.

Pipeline for Transfer of LPG from BPCR / HPCR Mumbai to Uran

The project envisaged laying a 28 km pipeline (12 km offshore and 16 km onshore) and provision of three 900 MT Mounded Storage Vessels (MSVs) at BPCL’s Uran LPG Plant. The pipeline is being laid to transfer LPG from BPCL’s Mumbai Refinery and the Mumbai Refinery of Hindustan Petroleum Corporation Limited (HPCL) at a project cost of Rs 276.84 crores. The pipeline portion of the project, costing Rs 229.6 crores, will be shared equally with HPCL. The MSVs cost around Rs 47.24 crores and are on BPCL’s account. The pipeline was commissioned on 31st October, 2014. The cumulative expenditure of the project as on 30th June, 2015 is Rs 269 crores.


In line with constantly changing business needs, the Research and Development Centres of BPCL are focusing on development of niche and innovative products and process technologies and providing advanced technical support for refinery processes, lubricant formulations and product / process development. These centres have achieved significant breakthroughs in the past few years. They boast of producing more than 20 patents in the last 5 years and the aspiration is to emerge as a world class technology solution provider in the near future.

BPCL has R&D facilities at three locations - the Corporate R&D Centre at Greater Noida, Uttar Pradesh, R&D Product & Application Development Centre at Sewree, Mumbai and the in-plant R&D Centre at Kochi Refinery. All three centres provide the Company an edge over competitors and technological breakthroughs for future business developments.

The core research areas of the R&D centres are broadly divided into four categories, namely (a) development of energy efficient technologies for fuel and chemical production (b) technical support to refining processes (c) new product and additive development and (d) alternate fuels and energy.

The R&D programs have been discussed separately in the MD&A. Further, the areas covered under R&D and the benefits derived from R&D activities are detailed in Annexure A to the Directors’ Report.


BPCL has undertaken initiatives in tapping non-conventional energy sources like wind energy, solar energy and fuel cells, in order to develop such alternate sources of energy. The improved economics for investment in solar and wind energy and favourable Government policy for renewable energy has prompted the Company to develop a Renewable Energy Policy which was approved by the Board. BPCL has installed 5 MW capacity windmills in the hilly range of Kappatguda in Chitradurga District, Karnataka and a 0.5 MW wind farm in Tamil Nadu. The windmills are currently working satisfactorily and power produced is sold to the State electricity grid. In addition to the above, BPCL has commissioned smaller KW scale solar plants for a total capacity of about 1500 KW for lighting and admin office building electrical loads at Kochi and Mumbai Refineries, 205 retail outlets, along the Mumbai-Manmad pipeline, some LPG bottling plants and Lube blending plants. Under the renewable energy policy, a 4 MW solar plant at Bina Despatch Terminal and a 6 MW grid connected wind power project are being put up.

BPCL is currently evaluating the option of setting up more solar farms and windmills in various states, depending on availability of land and other commercial considerations.


The overall industrial relations climate remained peaceful and cordial throughout the year. All organizational and employee related issues were handled with a collaborative approach and regular communication was ensured to all employees on all important issues affecting them and the Organisation.


Through its CSR initiatives, BPCL has widespread impact throughout the country, in and around our business locations as well as in rural / tribal communities. Every year brings new learning and using these inputs, we have scaled up various projects, taken up new projects and exited from certain projects that have attained sustainability. Our core thrust areas for CSR are education, water conservation, skill development, health and hygiene and community development.

Improving quality education, which is one of our core thrust areas under CSR, is also the biggest equalizer in today’s world. Education contributes to individual well being as well as overall development of the country. It enhances the standard of living, helps in overcoming the problems of poverty and unemployment and brings in social equality. Therefore, the projects supported by us under education are primarily focused on improving the ‘quality of learning’ and bridging the gap that comes in the way of the learning process and inclusivity.

The Computer Assisted Learning Project (CAL), our flagship project, is for the children of primary and secondary grades studying in Government schools and low income private schools. It aims at improving the learning levels of children and making them digitally enabled through a technology interface. In the year 2014-15, the project was scaled up to 45 new centres in Jaipur (Rajasthan), Mumbai and Solapur (Maharashtra). The earlier centres in Uran and Lucknow continue to benefit children year after year. Thus, BPCL reached out to 38,000 new children during the year. Capacity building sessions were organised with the School Management Committees of the above schools, so that the committee members are empowered on the rules under the Right to Education Act and also take more interest and ownership in the education process and learning levels of their children.

The project also resulted in indirectly generating local level employment, by way of the Sancharikas (teacher facilitators) for imparting computer education. Every school has one or two sancharikas (depending on the enrolment of children in the school) adding to a total of around 100. They are trained in both, technical as well as soft skills, thereby making them thorough professionals. Our one-of-a-kind Science Education Project, which provides experiential science learning to children, is executed in collaboration with the NGO, ‘Agastya International Foundation.’ The project is for children from 90 Government schools near Solur, Bangalore (Karnataka) and in the year 2014-15, it has been scaled up to 25 Government schools in and around Chembur, near Mumbai Refinery.

There were about 300 students who have been groomed during the year 2014-15 as Young Instructor Leaders. They act as peer leaders and help in teaching Science through experiments to their fellow mates. In the same year, 105 Government school teachers were trained on the above themes. The training not only composed of clarifying their doubts, but also on how to use creativity in teaching methods and other activities.

Another flagship project i.e. District-wide Education Project - ‘Akshar’ (Read India) for impacting the learning levels of children through learning camps, was being supported by BPCL in the Districts of Sagar (MP) and Nandurbar (Maharashtra). This project in 2014-15 was scaled up to cover Dausa and Jaipur (Rajasthan). In Nandurbar and Sagar, 30 days of learning camps were conducted in Maths and Language to improve the learning levels of Government school children. 210 schools in Sagar and 180 schools in Nandurbar encompassing 25,343 students from Class I - V were covered in these camps. After BPCL intervention, there was a 24% improvement in children’s Reading and Maths levels in Sagar, while Nandurbar saw a similar 18% improvement in Reading levels.

Along similar lines, our project for educating tribal students in Mayurbhanj and Sundergarh districts of Odisha has been continued. 4,453 children now have access to school education. In the coming years, we are now changing the focus of the project to improving the quality of education, rather than solely complying with the provisions of the Right to Education Act, the mantra being, "Attending school & learning well." In 2014-15, we have successfully completed the second batch of our unique in-house pilot project for professional development of primary teachers, upper primary school teachers and principals from schools run by the Municipal Corporation of Greater Mumbai and other low income schools. This program aimed at encouraging teachers to use new techniques for teaching and classroom management and develop new teaching materials according to the needs of the class. By working with the teachers and school management, we are effecting a sustainable change in the existing education system. Additionally, our employee volunteers too added value in the classroom by telling stories with moral values.

Last year, we had taken up a new library project aimed at impacting literacy and reading skills and therefore, increasing creative thinking and supplementing learning on the whole. In the year 2014-15, we have continued supporting 20 libraries in Mumbai and Delhi and have increased the reach by an additional 5 libraries in Mumbai, where over 3,700 children are benefitted. In addition, these libraries have a special Teachers’ section and can be used by the community around the schools as well.

Project BalaJanaagraha was scaled up to include new schools in Kochi, in addition to those in Bangalore. The project aimed at instilling good citizenry in children as the key to building good and vibrant nations. This unique civic education project targeted at creating responsible and proactive citizens through conducting civic sessions in schools, gave 2,862 children know-how about their rights and duties. Civic fests at the local, city and national level were held in which the children participated in nationwide competitions. Citizenship surveys were conducted before and after the program to gauge the increase in awareness levels of the children.

Our education system often turns out students who are not employable, even after completing years of studies. With an objective to empower unemployed youth, women and persons with disabilities near our businesses and also equip them with skills, we have several NGO partners in different parts of the country. Placement linked vocational training of 1,000 youth was supported by BPCL near Kochi Refinery, to increase the skills of the local youth and the economic level of the surrounding community. Training was done in construction and fabrication related trades as well as hospitality, retail management, computer accounting and office automation for the youth, women & differently-abled. Over 70% of these youth have been placed and are being tracked to ensure job retention.

Through training in zardosi and Aari work, about 130 women in Loni earn and save enough to send their children to school. On an average, each woman adds around Rs 3,000 per month to the family income. The women are provided inputs on financial management through self-help groups and forward and backward market linkages, so that they can earn independently on completion of the project. Towards inclusion and giving the differently-abled a chance to become economically contributing members of society, we have several projects for skill training of disabled persons. The LABS project for Persons with Disabilities in Mumbai and Noida saw 200 youth who were trained and then placed with various companies. Along similar lines in Kolkata, we trained 80 disabled and underprivileged youth from economically backward families in Desktop publishing. Our BPCL volunteers also gave these youth sessions on personality development to help them get better placement. In various other projects, persons with hearing, visual and physical disability were given training in skills that

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Key Information

Key Executives:

S V Kulkarni , Company Secretary

K K Gupta , Director (Marketing)

B K Datta , Director (Refineries)

Shrikant P Gathoo , Director (Human Resources)

Company Head Office / Quarters:

Bharat Bhavan PB No 688,
4&6 Currimbhoy Rd Ballard Est.,
Phone : Maharashtra-91-22-22713000/4000 / Maharashtra-
Fax : Maharashtra-91-22-22713874 / Maharashtra-
E-mail : info@bharatpetroleum.in
Web : http://www.bharatpetroleum.in


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