Bharat Petroleum Corporation Ltd. share price target

BPCL's Q3FY21 EBITDA/PAT was a strong beat to our forecast led by stronger than expected product sales volume, lower than expected employee expenses and significantly higher other income. Reported GRM came at US$2.5/bbl owing to inventory gain of Rs5bn (US$1.24/bbl) while core GRM stood at US$1.23/bbl, in-line with our expectations. Domestic petroleum product sales volume improved 0.7% YoY to 11.1mmt. However, crude throughput declined 14% to 7.24mmt, below our estimates. Management indicated to close NRL divestment to a consortium of Oil India and Engineers India (Only bidder) by FY21. Further, it expects its marketing margin going forward to remain at the similar level of...

Banks expects several streams of cash recoveries in Q4FY21 with the likes of DHFL and other 17 NCLT accounts PNB earnings were lower than estimates at Rs5.1bn (PLe: Rs8.5bn) as higher provisions offset slightly better NII and lower opex. Although, higher provisions on pro-forma NPAs have covered the risks, while on restructured as well bank has provided 10% on implemented accounts. A major positive...

We change our FY23E earnings estimates by 32% to incorporate inventory gains of Rs37.8bn in 9MFY21 and make minor changes; FY22/23 earnings are changed by 6%/4%. During Q3FY21, core standalone EBIDTA adjusted for inventory gains and forex gains was at Rs34.6bn (+178%QoQ) due to higher marketing earnings. We believe uncertain global demand and high inventory levels will likely keep crude oil prices range bound to support marketing...

BPCL reported inventory gains of INR7.7b (v/s our expectation of INR18b), with marketing/refining gains at INR5b/INR2.7b. Reported EBITDA increased 54% YoY to INR43.1b. Adjusted EBITDA (for inventory gains) stood at INR35.3b v/s INR22.6b in 3QFY20. Other income was higher due to INR6.1b dividend received from the Numaligarh refinery (NRL). While other expenditure was lower, led by smaller savings in terms of operating expenditure; however, the company doesn't expect it to continue in future....

BPCL is a leading player in the Indian petroleum industry.

Bharat Petroleum Corp. Ltd. (BPCL) Q2, Profit turns sweeter after cost-cutting measures, improvement in refining margins BPCL consolidated net sales fell 23% to Rs 49408.6 crore for the quarter ended Sep20 compared to corresponding previous year period. This included nil subsidy from the...

BPCL's Q2FY21 result was a beat to our forecast led by better than expected refinery margins owing to higher inventory gains and significant dip in finance cost. Reported GRM came at US$5.8/bbl owing to inventory gain of Rs13bn (US$4.3/bbl) while core GRM stood at US$1.5/bbl, beat to our estimate. Petroleum product sales volume declined 15% YoY to 9.2mmt while crude throughput declined 27% to 5.6mmt, below our estimates. Management highlighted that except ATF, growth for most of the product has crossed pre-Covid levels. We are revising our crude oil price assumption slightly downwards to US$45/bbl for FY22 from earlier US$50/bbl and expect higher supply and demand concern...

Q2FY2021 adjusted operating profit at Rs. 4,485 crore/ Rs. 2,581 crore, up 101%/46% y-o-y) was above ours and the street's estimates due to higher-than-expected inventory gains at Rs. 2,453 crore, better volumes and lower interest costs. A sharp beat in reported GRM at $5.8/bbl (up 71.6% y-o-y) led by refinery inventory gains of $4.3/...

BPCL's Q2FY21 earnings were in line, driven by recovery in core GRMs (US$ 1.56/bbl, ex-inventory gains) and robust marketing margins.