BPCL Q2FY17 results were below our expectation due to lower than expected GRMs and lower volume. Revenue declined 3.8% YoY to Rs447 bn, EBITDA was up 3.7% to Rs13.8 bn and net profit grew 28.2% YoY to Rs13.1 bn. Crude throughput increased 7.2% YoY to 6.4mmt while sales volume increased 4.7% YoY to 9.5mmt. GRM came at US$3.1/bbl in Q2FY17 vs US$3.9/bbl in Q2FY16 (IDBIest US$3.8/bbl) due to higher inventory loss in Kochi terminal. The company reported inventory loss on product of Rs3.6 bn vs Rs7.4 bn in Q2FY16. The company expects full commissioning of Kochi's expansion to start from Q4FY17 which would boost GRMs by around US$1.5/bbl from FY18E. Bina/NRL refineries reported a GRM of...