BPCL - Q4 FY21 First cut - YES Securities

BPCL's reported 4QFY21 Ebitda stood at Rs 50.6bn (+18% QoQ) vs a loss in the base quarter (4QFY20). The operating profit stood significantly ahead of street estimates (Rs 33.3bn), but slightly below our estimates (YES: Rs 63.8bn). The miss on our estimates stemmed primarily from lower inventory gains and higher than estimated operating expenses.

Key highlights:

4QFY21 Profitability: The Ebitda and PAT for the quarter stood at Rs 50.6bn (+17% QoQ) and Rs 119.4bn (+330% QoQ). The reported PAT carries a net impact of Rs 69.9bn as exceptional item, stemming from Rs 94.2bn gain from sale of NRL offset by Rs 20.3bn of impairment loss in upstream subsidiary (BPRL). Adjusted for exceptional gain, the adjusted PAT stood at Rs 49.4bn

Change in Tax regime: From 4QFY21 BPCL adopted the new corporate tax regime, effective FY21. Accordingly, the deferred tax liability has been restated by Rs 18.7bn and a MAT credit of Rs 7.2bn is now no longer available.

FY21 Profitability: The EBITDA and PAT for FY21 stood at Rs 171.3bn (+158% YoY) and Rs 190.4bn (+610% YoY). As compared to FY20, when the profitability was impacted by exceptional inventory losses, FY21 stands significantly better on higher operating profit and exceptional gains from sale of company's 61.6% stake in NRL

4QFY21 GRM: The GRM for the 4QFY21 stood at USD 6.6/bbl, supported by an inventory gain of USD 4.2/bbl, adjusted GRM as a result stood at USD 2.5/bbl

FY21 GRM: The FY21 GRM stood at USD 4.06/bbl (FY20: USD 2.5/bbl), adjusted for inventory gains the GRM stood at USD 1.85/bbl (FY20: USD 4.24/bbl).

Domestic Sales: Total Domestic products sales stood at 11.2mmt (+4% YoY; +1% QoQ), vs industry growth of 2.4% YoY during the quarter. The annual domestic volumes for FY21 therefore stood 10% YoY lower at 38.7mmt

MS reported growth of 10% YoY (industry: 9.7% YoY) and HSD sales growth of 5% YoY (industry: 4.3% YoY), implying marginal market share gain for BPCL

Marketing Margin: Gross marketing margins for the quarter stood at INR 5097per ton, which is 24% sequentially lower.

Shares of BHARAT PETROLEUM CORPORATION LTD. was last trading in BSE at Rs.467.75 as compared to the previous close of Rs. 471.3. The total number of shares traded during the day was 2167965 in over 39897 trades.

The stock hit an intraday high of Rs. 488 and intraday low of 465.9. The net turnover during the day was Rs. 1033450958.

Source : Equity Bulls

Keywords