BPCL trades mildly lower despite cons. net profit rises 25% in Q1

The Average Gross Refining Margin (GRM) of the Corporation during the quarter ended June 30, 2020, is $0.39 per BBL (April - June 2019: $ 2.81 per BBL).

Aug 14, 2020 11:08 IST India Infoline News Service

Shares of Bharat Petroleum Corporation Limited (BPCL) reported a 25.35% rise in consolidated net profit to Rs2,035.39cr in Q1 June 2020. Its consolidated net revenue in Q1FY21 stood at Rs50,909.24cr, which declined by 41.09% yoy from Rs86,412.87cr in Q1FY20.     

EBITDA stood at Rs4,259.87cr in Q1FY21 that has been increased by 42.86% yoy. EBITDA margin as of Q1FY21 was also up by 4.92% yoy at 8.37% in Q1.

The market sales of the Corporation for the Quarter ended 30th June 2020 were lower at 7.53 MMT when compared to 11.11 MMT achieved for the quarter ended 30th June 2019. Decrease is mainly in MS - Retail (-38.77%), HSD-Retail (-34.62%), ATF (-82.92%) and partly offset by increase in LPG (10.83%).

The Average Gross Refining Margin (GRM) of the Corporation during the quarter ended June 30, 2020 is $0.39 per BBL (April - June 2019: $ 2.81 per BBL).

The outbreak of COVID-19 globally and resultant lockdown in many countries, including from March 25, 2020 in India, had an impact on the business of the corporation. Consequently, lower demand for crude oil and petroleum products has impacted the prices and therefore, refining margins globally. Since petroleum products are covered under essential services, the refining and marketing operations of the Corporation were continued during the lock down period. During this quarter, there was lower refinery throughput and revenue from operations which was mainly due to lower demand of petroleum products. With the gradual reopening of the economy, BPCL expects the refinery throughput and revenue from operations to improve and be at normal levels post COVID-19 impact and removal of complete lockdown restrictions. Management has assessed the potential impact of COVID 19 based on the current circumstances and expects that there will be no significant impact on the continuity of operations of the Corporation, on useful life of the assets, on financial position etc. on a long term basis.

Other Expense for the period April-June 2020 includes foreign exchange loss of {56.58 Crores ( April - June 2019, there was a foreign exchange gain of { 31.46 Crores which was included in other Income).

The stock price is currently trading at Rs419.85 down by Rs1.35 or 0.32% from its previous closing of Rs421.20 on the BSE. The scrip opened at Rs426.70 and has touched a high and low of Rs426.70 and Rs415.55 respectively.

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