Bharat Petroleum Corporation Limited — Q2 FY24
BPCL reported a stellar Q2 FY24 with PAT of ₹8,501 crore, driven by robust refining margins (GRM of $18.49/bbl) and strong marketing performance.
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.
67%Questions answered2Evaded / deflected12Questions audited
Answered
High priority
Asked about GRM outperformance vs Asian benchmark, especially Bina Refinery.
Asked by Probal Sen, ICICI Securities
Management explained specific factors: improved cracks, high sulfur crude processing, product slate flexibility, and Russian crude.
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Question
Just wanted to understand if you can just, you know, explain to us where this, you know, outperformance against Asian benchmark is coming from.
V.R.K. Gupta, Director of Finance
The quarter gone by July to September, everyone is aware the crack itself has improved... The major other influencing factors for the Bina Refinery is our crude mix... higher crude intake of Russian Urals...
Partial answer
Medium priority
Asked for percentage of diesel, gasoline, ATF in product mix.
Asked by Probal Sen, ICICI Securities
Management only provided diesel share, not the combined percentage asked.
only gave diesel percentage, not gasoline/ATF
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Question
Is it possible to give us a sense of, diesel, gasoline and ATF, these three, would be roughly how much of our overall product is as a percentage?
V.R.K. Gupta, Director of Finance
Okay, roughly you can take Bina 57%, and Kochi we can take up to 45%, and Mumbai also we can take 45.
Answered
High priority
Asked about capital allocation and CapEx deployment over next three years.
Asked by Mayank Maheshwari, Morgan Stanley
Management provided detailed breakdown of CapEx by segment and stated returns are considered.
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Question
Can you just give us a sense of how we will be deploying the CapEx over the next three years, and what kind of returns are you kind of expecting out of that?
V.R.K. Gupta, Director of Finance
Our capital outlay for the next 5 years, we have workload around INR 150,000 crore... The major chunk... around INR 49,000 crore... We always are endeavoring to take good projects with good returns.
Answered
Medium priority
Asked about increase in creditors and other current liabilities.
Asked by Sabri Hazarika, Emkay Global
Management explained the excise duty timing and inventory procurement as reasons.
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Question
Your creditors as well as other current liabilities, both have grown, gone up significantly... Any specific reason behind that?
V.R.K. Gupta, Director of Finance
For March 2023, the excise duty we paid before 31st March, whereas for September, we have at least three, four days time to make the payment... That is the one reason...
Answered
Medium priority
Asked about profitability of EV charging stations and green hydrogen tender status.
Asked by Sabri Hazarika, Emkay Global
Management answered both parts: EV profitability is minimal, green hydrogen tender not yet awarded.
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Question
Can you give us some sense on what, how much, what is the kind of, like, profitability per EV charging stations you are making right now... Second question is whether the green hydrogen tenders of Bina Refinery has been awarded...
V.R.K. Gupta, Director of Finance
We are not expecting any good profits immediate basis... capacity utilization of EV charging stations are retail outlet, very, very minimal... Green hydrogen, we have refloated the tender for 5 meters of 5 MT per annum. Not yet awarded...
Partial answer
High priority
Asked about Mozambique project status and CapEx finalization.
Asked by Kirtan Mehta, BOB Capital Markets
Management acknowledged force majeure but gave vague timeline and no CapEx update.
no timeline givenno CapEx finalization details
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Question
Regarding the Mozambique project, could you give us the current status, and when do you expect? Has the CapEx been finalized by the owners...
V.R.K. Gupta, Director of Finance
For Mozambique project, there is no change in terms of the force majeure. Still, it is under force majeure only... We are hopeful, shortly, maybe next couple of quarters, something can, positively it can happen.
Evasive
High priority
Asked about Russian crude usage level in Q3 vs Q2.
Asked by Kirtan Mehta, BOB Capital Markets
Management refused to give exact numbers and only said they are close to potential.
no exact numbers givenvague reference to potential
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Question
Would you be able to give us some more color on the Russian crude usage in terms of the quarterly usage? Are we able to maintain a similar level in Q3 despite the increase in the crude prices?
V.R.K. Gupta, Director of Finance
I cannot give exact numbers, we cannot say, but at least in the similar quarters, what potentially we can process the Russian crude, as we are close to our potential crude processing...
Partial answer
High priority
Asked about current quarter trends in cracks and marketing profitability.
Asked by Ajay Marwaha, Nuvama
Management gave qualitative trends but refused to quantify or give guidance.
no specific numbersdeclined guidance on profitability
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Question
After such a fantastic quarter, how are things shaping up in the current quarter so far in the month of October? Meaning in terms of the cracks... and on the marketing side as well?
V.R.K. Gupta, Director of Finance
At least in terms of the cracks, the gasoline a little bit moderated now compared to the Q2... Marketing side, we are doing good growth... We generally don't give any guidance...
Answered
Medium priority
Asked about marketing inventory gains reversal from loss to gain.
Asked by S. Ramesh, Nirmal Bang Equities
Management explained the calculation methodology for inventory gains.
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Question
If you look at the marketing inventory gains, how do you explain the reversal from the loss in first quarter to the marketing inventory gain of INR 1,497 crore...
V.R.K. Gupta, Director of Finance
No, generally, it is not any accounting gains... on account of my crude price movement and product price movement, what is the changeover of my inventory... That is what we work out...
Evasive
Medium priority
Asked about CGD business timeline for commercial results and EBITDA per unit.
Asked by S. Ramesh, Nirmal Bang Equities
Management declined to provide any quantitative estimates or timeline.
no timeline givenno EBITDA per unit provided
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Question
Is it possible to give us some kind of timeline as to when we can see the commercial results in your standalone P&L, and what is the kind of EBITDA per unit of gas...
V.R.K. Gupta, Director of Finance
At this point of time, we will not be in a position to give any estimation on the volume sales of CGD... We need some more time to assess exactly in next couple of years...
Answered
Medium priority
Asked about quantum of excise duty payment and working capital impact.
Asked by Chinmay Gandre, Canara HSBC Life Insurance
Management provided a specific range for monthly excise duty payment.
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Question
What will be the quantum of this payment related to the excise duty?
V.R.K. Gupta, Director of Finance
Generally, every month we pay around INR 7,000 crore, around, around INR 7,000, 7.2, 7.3, around. Depends on the refined throughput on that particular month.
Partial answer
High priority
Asked if Russian crude processing is at full optimized level and percentage of total intake.
Asked by Maulik Patel, Equirus Securities
Management confirmed full potential but only gave a vague range for percentage.
no exact percentage givenvague confirmation
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Question
Is that till the time we process this, I mean, whatever the Russian oil which we are processing it, currently we are running at full optimized level... That could be almost 30%-40% of our total intake?
V.R.K. Gupta, Director of Finance
At least we are, we are pushing up to the potential level... Roughly all three refineries put together, that range, that range.