Nirmal Bang Institutional
Weak GRM Induced-EBIT Loss Turns Into Profit With Higher Other Income SELL Bharat Petroleum Corporation or BPCL's reported earnings of Rs4.9bn in 3QFY19 were down 76.9% YoY and 59.4% QoQ. The key reasons are: 1) Decline in gross refining margin or GRM from US$7.89/bbl in 3QFY18 and US$5.57/bbl in 2QFY19 to US$2.78/bbl in 3QFY19. 2) Interest expenses at Rs3.4bn, rose 2.8% QoQ and 68.3% YoY. However, EBIT-level loss was converted into profit by: 1) Growth in other income to Rs9.6bn a rise of 79.8% QoQ and 33% YoY. 2) Decline in other expenses to Rs33.6bn a fall of 30.5% QoQ and 7.2% YoY. 3) Sharp decline in the tax rate to 16% in 3QFY19 from 35% in 2QFY19 and 29% in 3QFY18. We...
Bharat Petroleum Cor.. has an average target of 374.14 from 9 brokers.
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