- 08 Nov 2022
- ICICIdirect Research
Bharat Petroleum Corporation BPCL reported Q2FY23 results that were higher than our estimatesBPCL - 352 Change: -6.75 (-1.88 %)
BPCL’s topline was up 26% YoY (down 7.3 QoQ) to Rs 128332.7 crore (our estimate: Rs 113206.7 crore). Marketing sales were at 11.4 MMT, up 15.4% YoY (down 2.7% QoQ), largely in line with estimate
· BPCL achieved crude throughput of 8.8 MMT, up 23.2% YoY (down 9% QoQ). Reported GRMs at US$ 16.8/bbl were above our estimate of US$ 5.1/bbl. The company did not disclose refining inventory details. The company received a one-time grant from the Government of India of Rs 5582 crore for the under-recoveries on sale of domestic LPG
· As per our understanding, marketing losses were higher than expected as the company did not pass on increased crude oil costs to customers. The company reported marketing inventory loss of Rs 384 crore and forex loss of Rs 1549.62 crore during the quarter. Subsequently, EBITDA was at Rs 1434 crore against EBITDA loss of Rs 5865 crore in Q1FY23 (estimated EBITDA loss: Rs 6493 crore)
· The company reported net loss of Rs 304.2 crore (estimated net loss: Rs 5755 crore)
BPCL's crude throughput and marketing sales have declined QoQ in Q2FY23. On the refining front, product cracks dipped from elevated levels seen in Q1FY23. Passing on higher retail prices of Petrol & Diesel to customers (due to higher crude oil costs) will be the key for better performance.