BPCL Q4FY13: Strong set of numbers on higher volume and GRM; CMP: Rs376; TP: Rs445; BUY - IDBI Capital

BPCL came out with strong set of result in Q4FY13 where revenue was in-line with our expectation while EBITDA and PAT was significantly above our expectation driven by higher than expected sales volume and lower other expected expenditures. Revenue grew 2.5% YoY To Rs663 bn due to higher sales volume and higher over-recovery, partially offset by lower crude throughput. The company's sales volume increased 2% YoY to 9.3mmt while crude throughput declined 3% YoY to 5.8mmt. The company made an over recovery of Rs57 bn in Q4FY13 compared to Rs36 bn in Q4FY12.

Further, EBITDA grew 30% YoY to Rs66 bn in Q4FY13 due to better GRMs and higher over recovery. GRM increased to US$6/bbl compared to US$4.2/bbl in Q4FY12.

The company's interest expenses declined significantly 36% YoY and 45% QoQ to Rs3.2 bn which led to a 21% increase in net profit to Rs48 bn. Sudeep Anand (Sudeep.anand@idbicapital.com, +91-22-4322 1190) will come out with detailed note post concall. We have a BUY rating on the stock.

Source : Equity Bulls

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