Bharat Petroleum Corporation Limited — Q1 FY24
BPCL reported a stellar Q1 FY24 with consolidated PAT of INR 10,644 crore, its highest ever, driven by record refinery throughput at 115% capacity utilization and strong marketi...
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
50%Questions answered4Evaded / deflected12Questions audited
Evasive
High priority
Future retail fuel pricing approach after recovering losses.
Asked by Rajesh Rai, ITI Limited
Management did not commit to any pricing outlook, deferring to crude price uncertainty.
no timeline givendeferred to crude price stability
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Question
Now that a large part of the recoupment of whatever losses we had made earlier has been done, so what's your take on the future return fuel prices?
V.R.K. Gupta, Director of Finance
We have to wait and see how the crude prices will stabilize, then we can take a call on the pricing side. As on date, we are not fully recovered 100%.
Partial answer
High priority
Allocation of INR 18,000 crore rights issue between energy transition and security.
Asked by Sabri Hazarika, Emkay Global
Management gave broad categories but no specific allocation numbers.
no specific split givendeferred to future announcement
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Question
Can you give us some sense on how the allocation would be on energy transition versus energy security?
V.R.K. Gupta, Director of Finance
Most of the INR 18,000 crore rights issue proceeds will be allocated towards these objectives. Individual project-wise, we are working on it. We'll announce at the time of filing our application.
Answered
High priority
Why Mumbai Refinery margins are lower than Bina and Kochi.
Asked by Amit Rustagi, UBS
Management provided specific reasons for margin difference.
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Question
Why the margins are so low versus Bina and Kochi?
V.R.K. Gupta, Director of Finance
Mumbai Refinery can process lower sulfur grades and Russian crude composition is lesser. Also, non-availability of hydrogen had a small impact.
Answered
High priority
Total recoverable LPG amount from government.
Asked by Amit Rustagi, UBS
Management gave specific numbers and explained the buffer status.
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Question
What exactly is the total, you know, still recoverable on account of LPG from the government? Any numbers on that?
V.R.K. Gupta, Director of Finance
As on March 2023, we have a negative buffer of around INR 850 crores. During this quarter, entire INR 850 crore we have recorded. As on June 30, 2023, there is no negative buffer.
Partial answer
Medium priority
Russian crude share in Mumbai Refinery and Petchem project utilization.
Asked by Hemang Khanna, Nomura
Management gave a directional percentage but not exact share.
exact Russian crude share not given
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Question
What will be the total share of the Russian crude sourcing in Mumbai Refinery? Secondly, what is the overall utilization for the Petchem project and GRM benefit?
V.R.K. Gupta, Director of Finance
Mumbai Refinery cannot process Russian crudes much beyond around 20%. PDPP units operated around 70%. GRM contribution on account of PDPP will be around $0.4-$0.5 per barrel.
Declined
Medium priority
Refinery inventory loss number.
Asked by Varatharajan Sivasankaran, Antique Stock Broking Limited
Management explicitly declined to provide the requested number.
refused to provide number
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Question
I wanted the refinery inventory loss, if you can give us the number?
V.R.K. Gupta, Director of Finance
We don't publish refinery inventory In & Out. Marketing inventory, last time already we have provided. Refinery, we are not working on separate anything.
Evasive
High priority
Reassurance on profitability focus and no price cuts.
Asked by Sumit Rohra, SmartSun Capital
Management avoided giving any assurance on pricing or profitability focus.
no commitment on price cutsdeferred to crude outlook
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Question
If you can just spend a few minutes and basically reassure markets that profitability is the key focus... Is it safe to assume that there's gonna be no price cut?
V.R.K. Gupta, Director of Finance
At this point of time, we cannot comment anything on the price, because we have to wait and see how the crude prices will behave.
Answered
High priority
Details on petrochemical capacity expansion at Bina.
Asked by Prabhat Singh, ICICI Securities
Management provided specific capacity, products, feedstock, and timeline.
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Question
If you can kindly give some details in terms of the exact capacities planned and the kind of inputs that will be used for this project.
V.R.K. Gupta, Director of Finance
Capacity of 2,200 KTPA consisting of HDPE, LDPE, polypropylene. Dual feed using naphtha. Completion by 2028.
Answered
Medium priority
Planned plant shutdowns this year.
Asked by Siddharth Chauhan, DNK Securities
Management gave specific shutdown schedules for each refinery.
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Question
Is it possible to give us information about what kind of plant shutdowns you have planned this year?
V.R.K. Gupta, Director of Finance
Bina Refinery shutdown in July, Kochi in August for 15 days, Mumbai CDU at end of September for a month.
Partial answer
Medium priority
Russian crude discount and proportion in Q1.
Asked by Vidyadhar Ginde, Soham Asset Managers
Management gave directional trends but no specific numbers.
no exact discount or proportion given
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Question
Could you give us some color on whether the discounts on Russian crudes have come down, and whether the proportion of Russian crude used in Q1 will remain at that level?
V.R.K. Gupta, Director of Finance
Discounts have been lesser during this quarter than current time. We cannot comment what exactly the discount will be. Proportion is in a good number only.
Evasive
Medium priority
Impact of PNGRB pipeline regulation on market share.
Asked by Yogesh Patil, Dolat Capital Market
Management admitted they have not studied the issue.
no study donedeferred to later
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Question
How it will impact on our marketing of oil products... Do you see any kind of impact on our market share?
V.R.K. Gupta, Director of Finance
We have not studied what is the impact of the market share. We will come back.
Partial answer
High priority
Russian crude payment mechanism if price exceeds $60.
Asked by Kirtan Mehta, BOB Capital Markets
Management acknowledged past issues but gave no definitive answer.
no clear assurancedeferred to future
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Question
If the Russian crude prices crosses $60 per barrel, would we be able to continue to make payment using the current mechanism?
V.R.K. Gupta, Director of Finance
We have faced a little bit payment issues earlier. Now more banks are ready. We have to wait and see.