Bharat Petroleum Corporation Limited — Q4 FY24
BPCL reported Q4 FY24 revenue of INR 132,085 crore and PAT of INR 4,224 crore, contributing to a record full-year net profit of INR 26,674 crore.
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.
75%Questions answered1Evaded / deflected12Questions audited
Answered
High priority
Product slate of Bina Refinery yields
Asked by Probal Sen, ICICI Securities
Management provided specific yield percentages for major products.
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Question
Can we just get a broad sense of the product slate of this refinery, just in terms of what is the yield of diesel, petrol, ATF, some of the major products?
Krishnakumar Gopalan, Chairman and Managing Director
In respect of Bina, the product rates, for MS, it is 15.5%. Diesel is around 53%-54%. ATF is around 8%.
Answered
High priority
Reason for Bina refinery outperformance
Asked by Probal Sen, ICICI Securities
Management clearly explained the two key drivers for higher GRMs.
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Question
I mean, just the diesel yield itself is responsible for the clear outperformance of this refinery versus any other refinery in the country today? Anything you can sort of give us a flavor of why this refinery is doing so well?
Krishnakumar Gopalan, Chairman and Managing Director
Two major contributing factors for this Bina higher GRMs. One is the crude mix... majority of the crude is coming from Russian Urals side. And the second is the product rate... diesel cracks were very good during the current financial year.
Partial answer
Medium priority
Percentage of Russian crude in Q4 vs Q3
Asked by Probal Sen, ICICI Securities
Management gave full-year figure but did not address quarter-on-quarter comparison.
did not compare Q4 vs Q3 specifically
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Question
Was the percentage of Russian crude slightly lower in this quarter versus Q3? Or has it remained?
Krishnakumar Gopalan, Chairman and Managing Director
For FY 2023/2024, our imported crude is around 36 MMT. Out of 36 MMT, around 39% we have procured from Russia.
Answered
High priority
Marketing margins at current crude prices
Asked by Probal Sen, ICICI Securities
Management gave a clear comfort zone for crude prices and acknowledged potential short-term squeeze.
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Question
We are not really making any significant margins from retail fuels. So what is the thought process about looking at the price? Or at the moment, we are comfortable with our overall margin mix?
Krishnakumar Gopalan, Chairman and Managing Director
As long as crude prices are hovering at $80-$85 range, so we are comfortable even at this pricing. The margins may be squeezed for a short period of time.
Evasive
Medium priority
Timeline for Mozambique project restart
Asked by Probal Sen, ICICI Securities
Management expressed hope but gave no concrete timeline or commitment.
no commitmentvague language
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Question
Is it reasonable to assume that restart will happen sometime over the next 12 months? So in FY 2025, we can see a resumption of operations?
Krishnakumar Gopalan, Chairman and Managing Director
We are very probable, we are very hopeful that it will restart during this year. We are also very keen to see it and ensure it starts.
Answered
High priority
CapEx target for FY25 and over next few years
Asked by Amit Murarka, Axis Capital
Management provided specific CapEx numbers for FY25 and clarified the five-year plan.
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Question
On CapEx, could you spell out the target for FY 2025 and broadly how will the CapEx pan out over the next few years given that target of INR 1.5 lakh crore over five years?
Krishnakumar Gopalan, Chairman and Managing Director
For FY 2024/2025, we are estimating our CapEx outlay will be around INR 15,000-INR 16,000 crore... Over a period of five years... our CapEx outlay will be around INR 1.7 lakh crore.
Answered
High priority
Petrochemical project at Kochi progress and profitability
Asked by Mayank Maheshwari, Morgan Stanley
Management gave capacity utilization and gross margin figures for the year.
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Question
In terms of the petrochemical project at Kochi, can you just talk us of how has been the progress in terms of margin contribution this year and this quarter and any improvement in terms of the overall profitability of that project?
Krishnakumar Gopalan, Chairman and Managing Director
Previous year, the operating capacity was 60%. This year, it was at 70%. The gross margin during this year from petrochemicals is around INR 560 crore as compared to INR 364 crore previous year.
Partial answer
Medium priority
Renewables target and impact on operating costs
Asked by Mayank Maheshwari, Morgan Stanley
Management gave cost context but did not quantify the savings impact.
no quantified savingsdeferred quantification
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Question
You're talking about 10 GW target in terms of renewable capacity. Can you just walk us through how it will lower your operating costs at the refinery level?
Krishnakumar Gopalan, Chairman and Managing Director
We have an ambition of around 10 GW over a period of next 15 years... It will significantly help in cost efficiency... the RE power generation is coming around INR 2.6-INR 2.7. Even including the landing, it will be around INR 5 or INR 5.20.
Answered
High priority
Refining capacity expansion plans beyond Bina
Asked by Sabri Hazarika, Emkay Global
Management outlined additional capacity from debottlenecking and target capacity.
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Question
Bina expansion is the only one, right? Are you planning something else also other than that?
Krishnakumar Gopalan, Chairman and Managing Director
We are working towards some sort of capacity addition from the existing refineries where maybe respective refineries can take up additional 11.5 additional capacities we can create by deep bottlenecking... we want to take our refining capacity from the existing level to 45 MMT.
Answered
High priority
Brazil write-off reason and amount
Asked by Varatharajan Sivasankaran, Antique Stock Broking
Management explained the dispute, impairment, and appeal process.
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Question
Just wanted to check on this Brazil thing, what exactly transpired and why we are writing off at this point in time. And is there a breach of contract there?
Krishnakumar Gopalan, Chairman and Managing Director
We have one investment in BMC-30... it went to a dispute with the operator... the order has gone against Bharat Petroleum... we have impaired. But however, we have filed an appeal.
Partial answer
High priority
Steady-state GRM expectation for CapEx planning
Asked by Somaiah Valliyappan, Avendus Spark
Management gave a broad range but declined to provide a specific steady-state GRM.
no firm guidancebroad range given
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Question
What is the kind of steady-state GRM you think this business can give us, which can focus on cash flows?
Krishnakumar Gopalan, Chairman and Managing Director
Very difficult to give any guidance for the GRM... even if you take a 10-year average crack... maybe if it is in the range of $6-$8. So whatever our CapEx outlay... with the peak debt equity levels of around one, we are comfortable.
Partial answer
Medium priority
Crude and product inventory gains for Q4 and full year
Asked by Yogesh Patil, Dolat Capital
Management did not provide crude inventory gains but gave marketing inventory losses.
no crude inventory gain/loss figureonly marketing inventory loss given
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Question
If you could share the crude inventory gains and the product inventory gains numbers for this quarter and whole year, that would be helpful.
Krishnakumar Gopalan, Chairman and Managing Director
We have not calculated anything separately for crude inventory gain losses in the GRM... For marketing, already we have given in our handoff. For the full year, the marketing inventory losses are around INR 765 crore for the quarter, and for the full year, INR 707 crore for the full year losses.