BPCL (Q3 FY14)

India Infoline News Service | Mumbai |

BPCL reported a net loss of Rs10.9bn as compared to a profit of Rs16.5bn in Q3 FY13.

CMP Rs354, Target Rs420, Upside 18.6%
  • Net sales for Q3 FY14 rise 3.8% yoy driven by higher volumes, higher realizations and rupee depreciation

  • Upstream companies shared under recovery burden worth Rs39.7bn in Q3 FY14 v/s Rs36bn in Q3 FY13

  • Throughput was lower by 6.8% qoq at 5.6mt owing to maintenance shutdowns at secondary processing units. GRM for the quarter was at US$1.8/bbl sequentially down by 62%

  • Net loss of Rs10.9bn 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)
Q3 FY14
Q3 FY13
% yoy
Q2 FY14
% qoq
Net sales
647,676
623,687
3.8
617,845
4.8
Material costs
(287,222)
(244,533)
17.5
(270,300)
6.3
Purchases
(344,968)
(327,845)
5.2
(291,866)
18.2
Personnel costs
(6,059)
(5,952)
1.8
(6,681)
(9.3)
Other overheads
(18,586)
(22,484)
(17.3)
(31,922)
(41.8)
Operating profit
(9,158)
22,873
-
17,077
-
OPM (%)
(1.4)
3.7
(508) bps
2.8
(418) bps
Depreciation
(5,592)
(4,657)
20.1
(5,382)
3.9
Interest
(3,045)
(5,758)
(47.1)
(3,244)
(6.1)
Other income
2,508
4,018
(37.6)
4,568
(45.1)
PBT
(15,288)
16,476
-
13,019
-
Tax
4,398
-
-
(3,708)
-
Effective tax rate (%)
28.8
-
28.5
Adjusted PAT
(10,889)
16,476
-
9,311
-
Adj. PAT margin (%)
(1.7)
2.6
(432) bps
1.5
(319) bps
Ann. EPS (Rs)
(60.2)
91.1
-
51.5
-
Source: Company, India Infoline Research

Net sales grow by 3.8% on back of growth in product sales and realizations

Bharat Petroleum Corporation Ltd (BPCL) reported 3.8% yoy rise in net sales to Rs647.7bn for Q3 FY14. The growth was on the account of 3.5% yoy rise in domestic sales and 7% yoy increase in product realizations. Export volumes were lower by 6.3% yoy. Budgetary support to the topline was seen at Rs25bn vis-à-vis Rs60bn in corresponding quarter last year and sans the government payout the growth in topline was higher at 10.4% yoy. Total product sales for the quarter were recorded at 9.5mmt, implying a 2.7% yoy growth mainly led by 3.5% growth in domestic sales. Amongst the products MS, ATF and HSD segments grew by a healthy 9% yoy, 12.7% yoy and 6.6% yoy respectively whereas de-growth was recorded in Furnace Oil (-20.2% yoy) and LSHS (-20.2% yoy) segments. For 9m FY14, the total budgetary support to BPCL has been Rs88.2bn (Rs132.2bn i

BSE 521.30 7.80 (1.52%)
NSE 521.25 7.70 (1.50%)

***Note: This is a NSE Chart

 

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