BPCL's Q1 PAT escalated by 95 per cent to Rs 2376.16 crore

Bharat Petroleum Corporation (BPCL) India’s second largest oil refiner of crude oil and marketer of petroleum products, recently announced its June quarter results. The BPCL posted a healthy 95.37 per cent year on year growth in Profit after Tax (PAT), which amounts to Rs 2376.16 crore in Q1FY16 as compared to Rs 1216.26 crore in Q1FY15. On the other hand its revenue declined by 22.20 per cent to Rs 51966.07 crore in Q1FY16 as against Rs 66790.22 crore in Q1FY15.

BPCL's revenue dipped mainly due to a 2.52 per cent fall in High Speed Diesel (HSD) retail sales and Naphtha sales declined by 91.76 per cent against same period of last year. While, its Motor Severe oil (MS) retail sales increased by 9.92 per cent and LPG sale up by 10.94 per cent on an annual basis. As a result BPCL's market sales for the June quarter was lower at 9.00 Million Metric Ton (MMT) against 9.10 MMT during the corresponding period of previous year.

The Company's total operating expenditure also decreased by 26.23 per cent to Rs 48148.07 crore in Q1FY16 as against Rs 65270.08 crore in Q1FY15. Majorly BPCL's raw material cost was down by 25.67 per cent on an annual basis to Rs 18811.27 crore and purchase in stock-in-trade declined by 24.65 per cent to Rs 26167.92 crore, because of a fall in the price of crude. While its other expenses were up by 15.66 per cent to Rs 2905.34 crore as compared to corresponding quarter of last year, it also includes Rs 47.80 crore loss on foreign currency transactions.

The EBITDA surged by 151.16 per cent on an annual basis to reach Rs 3818 crore in Q1FY16, while its EBITDA margin expanded by 507 basis points to 7.35 per cent as compared to the same period of last year. Mainly due to increase in average Gross Refining Margin (GRM) during the Q1FY16, which accounts to USD 8.55 per barrel against USD 3.38 per barrel in Q1FY15.

Its PBT jumped by 95.17 per cent to Rs 3496.16 crore in Q1FY16 as against Rs 1791.35 crore in Q1FY15. This was mainly due to marginal fall in depreciation to Rs 537.17 crore and a 41.11 per cent decline in interest cost to Rs 114.72 crore. However, its other income decreased by 67.74 per cent to Rs 330.05 crore compared to Q1FY15. BPCL's PAT margin expanded by 275 basis points to reach 4.57 per cent during Q1FY16 compared to Q1FY15.

BPCL's shareholding pattern indicates that FII holdings contracted by 540 basis points to 18.13 per cent and DII holdings expanded by 383 basis points to 12.09 per cent during Q1FY16 as compared to the same period of last year.

As per the media reports BPCL planning to invest over Rs 30000 crore in the next four years, out of which almost Rs 10000 crore would be spent in the current financial year. The capital expenditure for the current year would be primarily on the expansion of its Kochi refinery.