EBITDA margins fall by 2.9% due to under recoveries of high input prices.
Other income declines by 37% YoY during the quarter.
Bottomline plunges into the red owing to operating losses.
(Rs m) | 1QFY08 | 1QFY09 | Change |
Net sales | 238,694 | 390,220 | 63.5% |
Expenditure | 236,634 | 397,913 | 68.2% |
Operating profit (EBDITA) | 2,060 | (7,693) | |
EBDITA margin (%) | 0.9% | -2.0% | |
Other income | 4,341 | 2,757 | -36.5% |
Interest | 1,240 | 3,016 | 143.2% |
Depreciation | 2,276 | 2,691 | 18.2% |
Profit before tax | 2,885 | (10,643) | |
Tax | 958 | 24 | |
Profit after tax/(loss) | 1,927 | (10,667) | |
Net profit margin (%) | 0.8% | -2.7% | |
No. of shares (m) | 361.5 | 361.5 | |
Diluted earnings per share (Rs)* | 8.9 | ||
Price to earnings ratio (x)* | 34.9 |
The gross refining margin for BPCL during 1QFY09 was US$ 9.29 per barrel (US$ 6.50 per barrel in 1QFY08) for its Mumbai refinery and US$ 18.65 per barrel (US$ 7.97 per barrel in 1QFY08) for its Kochi Refinery.
On the volumes front, the market sales for BPCL during 1QFY09 have increased to 6.96 m tonnes (MMT) from 6.33 MMT during 1QFY08. The increase is mainly due to increase in volumes of diesel (19%), petrol (13%), Jet fuel (12%), LPG (7%) and Naphtha (6%). It was offset by reduction in volumes of furnace oil (-5%) and LSHS (-16%).
BPCL’s results for 1QFY09 have been adversely affected due to the impact on account of high crude oil and product prices, which could not be fully passed on to the consumers. The under recovery on diesel, petrol, PDS kerosene and domestic LPG was partially compensated by the upstream oil companies during the quarter. Accordingly, discount of Rs 26.6 bn (Rs 9.6 bn during 1QFY08) was received for the purchase of crude oil, kerosene and LPG from ONGC and GAIL. Moreover, the company has accounted for Rs 57.7 bn of oil bonds for 1QFY09 (Nil for 1QFY08).
BPCL claimed subsidy from the government towards sale of PDS Kerosene and domestic LPG amounting to Rs 1.4 bn during 1QFY09 (Rs 1.3 bn in 1QFY08).
Cost break-up
(Rs m) | 1QFY08 | 1QFY09 | Change |
Raw materials | 225,069 | 368,438 | 63.7% |
% sales | 94.3% | 94.4% | |
Staff cost | 2,800 | 6,707 | 139.5% |
% sales | 1.2% | 1.7% | |
Other expenditure | 8,765 | 22,768 | 159.8% |
% sales | 3.7% | 5.8% | |
Total cost | 236,634 | 397,913 | 68.2% |
% sales | 99.1% | 102.0% |
BPCL’s staff cost has zoomed by 140% on the back of a liability arising from a post retirement monthly fixed ex-gratia scheme to the tune of Rs 3.4 bn accounted for in 1QFY09.
BPCL’s other expenditure during 1QFY09 zoomed 160% due to losses on foreign exchange fluctuations to the tune of Rs 4.3 bn. (During 1QFY08, there were gains on foreign exchange fluctuations to the tune of Rs 2.5 bn which were accounted as other Income).