BPCL (Q2 FY14)

India Infoline News Service | Mumbai |

Bharat Petroleum Corporation Ltd (BPCL) reported 8.6% yoy rise in net sales to Rs617.8bn for Q2 FY14.

CMP Rs345, Target Rs420, Upside 21.7%
  • Net sales for Q2 FY14 rise 8.6% yoy driven by higher volumes, higher realizations and rupee depreciations

  • Upstream companies shared under recovery burden worth Rs42bn in Q2 FY14 v/s Rs36bn in Q2 FY13

  • Throughput was higher by 1.7% yoy at 6.04mt. GRM for the quarter was at US$4.64/bbl sequentially up by 14.6%. However on yoy basis the GRM declined by 28%

  • Net profit of Rs9.3bn was reported for the quarter

  • With recent favorable policy action and cushion from exposure in quality upstream assets, BPCL remains the best bet in OMC’s and we maintain our BUY recommendation with a 9-month target price of Rs420.

Result table
(Rs m)
Q2 FY14
Q2 FY13
% yoy
Q1 FY14
% qoq
Net sales
617,845
568,879
8.6
587,364
5.2
Material costs
(270,300)
(232,642)
16.2
(231,148)
16.9
Purchases
(291,866)
(267,296)
9.2
(306,526)
(4.8)
Personnel costs
(6,681)
(7,345)
(9.0)
(8,314)
(19.6)
Other overheads
(31,922)
(7,715)
313.7
(32,010)
(0.3)
Operating profit
17,077
53,880
(68.3)
9,366
82.3
OPM (%)
2.8
9.5
(671) bps
1.6
117 bps
Depreciation
(5,382)
(3,983)
35.1
(5,305)
1.5
Interest
(3,244)
(4,117)
(21.2)
(5,253)
(38.2)
Other income
4,568
4,568
0.0
3,383
35.0
PBT
13,019
50,348
(74.1)
2,191
494.3
Tax
(3,708)
-
-
(688)
439.2
Effective tax rate (%)
28.5
-
31.4
Adjusted PAT
9,311
50,348
(81.5)
1,503
519.4
Adj. PAT margin (%)
1.5
8.9
(734) bps
0.3
125 bps
Ann. EPS (Rs)
51.5
278.5
(81.5)
8.3
519.4
Source: Company, India Infoline Research

Net sales grow by 8.6% on back of growth in product sales and realizations

Bharat Petroleum Corporation Ltd (BPCL) reported 8.6% yoy rise in net sales to Rs617.8bn for Q2 FY14. The growth was on the account of 0.4% yoy rise in domestic sales, 10.3% increase in export volumes and 15% yoy increase in product realizations. Budgetary support to the topline was seen at Rs44bn vis-à-vis Rs72.4bn (entire H1 share received in Q2) in corresponding quarter last year and sans the government payout the growth in topline was higher at 15.6% yoy. Total product sales for the quarter were recorded at 8.86mmt, implying a 1.5% yoy growth mainly led by 10.3% growth in domestic sales. Amongst the products MS, ATF and HSD segments grew by a healthy 9% yoy, 12.4% yoy and 6.5% yoy respectively whereas de-growth was recorded in Furnace Oil (-25.8% yoy) and Naphtha (-20.4% yoy) segments

BSE 523.10 9.60 (1.87%)
NSE 523.05 9.50 (1.85%)

***Note: This is a NSE Chart

 

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