BPCL Q3 results update

Profit beats estimates: BPCL has reported a 24% on-quarter rise in net profit to Rs 2,777.60 crore in Oct-Dec 20 period, beating street expectations. Analysts had earlier anticipated a net profit of about Rs 2,038 crore. 

Revenues rise: Revenue rose 33.1% to Rs 66,731.4 crore. Analysts had pegged the metric at Rs 64,133 crore. Revenue rose on the back of higher other income during the quarter. Other income rose 165% to Rs 1,514.5 crore.

Strong operating performance: BPCL's EBITDA rose 11.8% to Rs 4,306 crore from Rs 3,851 crore, sequentially. EBITDA margin declined 130 bps to 6.4% from 7.7% in Jul-Sep 20 period. The operating performance also beat estimates. Average gross refining margin stood at $2.9 a barrel. Refinery utilisation stood at 108% in December, lowering fixed costs and aiding operating income.

GRM declines: The average gross refining margin, the amount that BPCL earns by refining one barrel of crude oil, stood at $2.9 a barrel in Q3FY21. This is down from $3.15 reported in the same period previous fiscal year.

Dividend: BPCL has declared an interim dividend of Rs 16 per share. The record date has been fixed as 19th Feb 2021. The payment will be made on 8th March 2021.  

BPCL's revenue growth came on the back of economic recovery in the latest quarter, as the reopening of the economy helped in rise of diesel and petrol demand. As a part of its divestment plan announced in the Union Budget, the government has proposed stake sale in BPCL. The government is hopeful of privatising BPCL by the first half of FY22. BPCL share price were trading 2% higher at Rs 427 on BSE.