Bharat Petroleum Corporation Limited — Q1 FY25
BPCL reported Q1 FY25 revenue of INR 128,103 crore and PAT of INR 3,015 crore, despite absorbing ~INR 2,300 crore in LPG under-recoveries.
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.
88%Questions answered1Evaded / deflected12Questions auditedContradictedNumbers vs filing
Evasive
High priority
Will government reimburse LPG under-recovery if buffer negative for 6-12 months?
Asked by Yogesh Patil, Dolat Capital
Management acknowledged losses but gave no timeline or mechanism for compensation.
no commitment on reimbursementdeferred to government
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Question
Is there any clause related to buffer account that government will reimburse the under-recovery if the buffer account remains negative for six months, 12 months, nine months down the line?
V.R.K. Gupta, Director of Finance
Today, during this quarter, the sale price is less than the cost price. As for the current compensation mechanism, there is no budgetary support as of date they have announced. So since there is no budgetary support announced, whatever be the incurrence in terms of losses on account of sale of LPG to domestic customers, that is what we have taken hit to the P&L.
Answered
High priority
What was the share of Russian crude processed in Q1?
Asked by Yogesh Patil, Dolat Capital
Management provided a specific percentage (39%) without hedging.
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Question
What was the share of Russian crude BPCL processed during the quarter?
V.R.K. Gupta, Director of Finance
39% of our entire throughput is from Russian crude during this quarter.
Answered
High priority
Were Russian crude discounts lower impacting GRM?
Asked by Yogesh Patil, Dolat Capital
Management quantified discount levels and compared sequentially and YoY.
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Question
Directionally, the discounts on the Russian crudes were lower compared to the previous quarter, and is that impacted on the GRM to some extent during the quarter?
V.R.K. Gupta, Director of Finance
Compared to year-over-year quarter, significant reduction of discounts have happened. But on a sequential basis, Q4 of last year and Q1 of current year, the trend is similar levels only, $3.5-$4 discount levels.
Answered
High priority
CapEx during the quarter and guidance for FY25?
Asked by Yogesh Patil, Dolat Capital
Management provided both quarterly spend and full-year guidance.
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Question
Can you share some CapEx during the quarter? What was the CapEx during the quarter, and what is the guidance for FY 2025?
V.R.K. Gupta, Director of Finance
In terms of the CapEx for the current year guidance, we have an estimated CapEx of around INR 16,400 crore during this year. Already, we have spent around INR 2,600 crore during this quarter.
Answered
High priority
What is total consolidated debt and cash position?
Asked by Yogesh Patil, Dolat Capital
Management gave specific numbers for debt and cash.
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Question
Can you share the total consolidated debt by the end of the first quarter and cash position?
V.R.K. Gupta, Director of Finance
Consolidated debt is around INR 42,700 crore consolidated group level. We have the surplus cash around INR 15,000 crore.
Answered
High priority
Why did BPCL grow slower than industry in market share?
Asked by Mayank Maheshwari, Morgan Stanley
Management acknowledged the issue and explained reasons.
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Question
You have grown a bit slower this quarter compared to the industry growth. So can you just comment in terms of how you are trying to defend your position?
V.R.K. Gupta, Director of Finance
This quarter, yes, I agree. We have grown at 3.2% compared to industry. We are not better than industry. There are two reasons... the private sector has taken back their normal volume.
Answered
High priority
What is the LPG under-recovery amount this quarter?
Asked by Sumeet Rohra, Smartsun Capital
Management provided exact figure and explained buffer movement.
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Question
Can you first quantify what's the amount of LPG under-recovery you have taken in this quarter? Is it INR 2,900 crore?
V.R.K. Gupta, Director of Finance
The LPG impact during this quarter is around INR 2,300 crore because we have a positive buffer of INR 280 crore beginning of the year. Currently, as the positive buffer becomes negative buffer of INR 2,015 crore, that means that net impact during this quarter is around INR 2,300 crore on account of LPG.
Answered
Medium priority
How many retail outlets added in Q1?
Asked by Sabri Hazarika, Emkay Global
Management gave a specific number (170).
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Question
How many retail outlets you have added in Q1? You said 22,000 is your target for the year.
V.R.K. Gupta, Director of Finance
171. During this quarter, 170.
Answered
High priority
Is new refining capacity beyond 45 MMT target?
Asked by Kirtan Mehta, BOB Capital Markets
Management clarified that new capacity is beyond 45 MMT.
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Question
You previously stated that you like to grow the refining capacity to 45 million tons. So is this new refining within the 45 million ton capacity target, or are we looking to extend refining beyond that?
V.R.K. Gupta, Director of Finance
The announced plans of 45 MMT from the existing refineries. So what we are looking at is much beyond 45 MMT because our market share itself is this year we are estimating around 52...
Partial answer
Medium priority
Update on Mozambique and Brazil E&P blocks?
Asked by Kirtan Mehta, BOB Capital Markets
Management gave status but no concrete timeline for resolution.
no firm timelineuncertainty
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Question
On the E&P side, could you update us on the status on the Mozambique as well as the Brazil block?
V.R.K. Gupta, Director of Finance
Mozambique still force majeure is continuing because our security situation has improved a lot compared to previous quarter. We are expecting maybe in another one quarter, there may be some good things can happen.
Answered
High priority
When will Bina refinery expansion be completed?
Asked by Ramesh S., Nirmal Bang Institutional Equities
Management provided specific target date (May 2028) and fiscal year.
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Question
If you look at the Bina refinery expansion plan, when do you see the refinery expansion to be completed?
V.R.K. Gupta, Director of Finance
Our project scheduled completion will be FY 2028-2029. May 2028 is our target date for refining expansion, refining to specialty employee expansion. We are expecting during FY 2028-2029, the commissioning will happen.
Answered
High priority
Can you talk about profitability and Project Aspire?
Asked by Sumeet Rohra, Smartsun Capital
Management gave normalized profit figure and aspirational target.
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Question
Can you talk a bit on profitability? ... you have something called Project Aspire, wherein you are looking to double profitability as well. So can you please talk a little bit about your Project Aspire on profitability?
V.R.K. Gupta, Director of Finance
This is a normalized profit if you remove the LPG under-recovery inventory gains, somewhere around we are at INR 4,800 crores or INR 4,700 crores profit generation during this quarter. ... we are aspiring to take it at least two times.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Normalized profit INR 4,600-4,700 crore | ₹4,700 cr | ₹2,842 cr | Overstated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.