Bharat Petroleum (BPCL) Q1 24/25 earnings summary

Executive summary

• Indian economy projected to grow 6.6%-7.8% in FY25, with inflation at 5.1% in June 2024, driven by food prices.

• Achieved strong growth with a 27% CAGR in profit from 2009 to 2024, driven by best-in-class refining assets and operational performance.

• Recognized as India's 5th largest company by turnover in 2023, with INR 5.3 lakh crore revenue and 25.37% market share in oil marketing for FY24.

• Petroleum product consumption in India grew 5.5% in Q1; BPCL's petrol and diesel volumes rose 6.3% and 0.32% year-over-year, respectively.

• The Board approved a 1:1 bonus share issue during the quarter, doubling the paid-up equity share capital.

Financial highlights

• Revenue from operations for Q1 FY25 stood at INR 128,103 crore; net profit was INR 3,015 crore, with EPS at INR 7.06.

• Standalone profit for FY24 reached INR 26,670 crore, a 14.2x increase over FY23.

• EBITDA for Q1 FY25 was INR 3,622 crore, down from INR 13,661 crore in Q1 FY24.

• LPG under-recovery impact: INR 2,300 crore absorbed in P&L for the quarter.

• Marketing inventory gain: INR 400 crore due to RTP changes.

Outlook and guidance

• Annualized petrol growth expected at 5%, diesel at 1.5%-2%.

• CapEx guidance for FY25: INR 16,400 crore; INR 2,438 crore spent in Q1.

• Capex plan of INR 1.7 lakh crore through FY29, focused on refining, petrochemicals, gas, green energy, and digital ventures.

• Bina refinery and petrochemical expansion scheduled for commissioning in FY 2028-29.

• Targeting net-zero Scope 1 & 2 emissions by 2040, with significant investments in green hydrogen, renewables, and biofuels.