BPCL's Q1FY21 EBITDA/PAT was a beat to our estimates at Rs Rs388bn/39.7bn led by stronger marketing margins and lower than expected other expenses. Reported GRM came at US$0.4/bbl owing to inventory loss of Rs4.4 bn while core GRM stood at US$1.9/bbl, in line with our estimates. Demand for petroleum products has now improved to 90% MoM in July 2020 but they continued to operate at ~73% of utilization level as current lower crack spreads of MS and HSD is not profitable. While the management expect long-term marketing margin to remain in the range of Rs 2-2.5/ltr, currently higher marketing margin is to recover capex incurred for BS-VI products. The company expects the deal to be over by...