BPCL has posted a strong topline growth of 83%. The increase in turnover was driven by increased volume and price realisations. Purchases for resale contributed to the increased volume as the throughput of the refinery declined due to planned shutdowns in the 1st quarter. The throughput declined from 2.2 m tonnes to 1.7 m tonnes.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
No. of Shares (eoy)
Earnings per share*
Although the operating profit of the company has grown significantly the growth is largely driven by increased volumes and not margins. In fact, the OPM has been under pressure due to the sharp rise in feedstock prices (crude oil) without a corresponding increase in product prices for the quarter ended June'00. Going forward the margins should improve with crude prices showing signs of softening.
The sharp increase in interest payments has been due to increased borrowings for meeting working capital requirements. The net working capital has increased as a result of increased business activity but more importantly due to the non-reimbursement of funds from the oil co-ordination committee (OCC).
The company seems to be keeping up its retail thrust with the focus of acquiring a large customer base for it LPG retail business. Consequently, the depreciation for 1QFY01 has grown significantly, as the practice is to depreciate LPG cylinders by 100%.
The three year average P/E multiple of BPCL is 12.6. It is currently trading at a multiple of 3.6 on 1QFY01 annualised earnings.
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