BPCL aims 2.4-trln-rupee net revenue, 2.5% operating margin in FY20

Monday, Jul 1, 2019


–BPCL aims 30.90-mln-tn refinery throughput FY20 vs 31 mln tn FY19

–BPCL targets operational availability of refineries at 98% in FY20

–BPCL targets 71-bln-rupee capex FY20 vs 64.8-bln-rupee aim FY19


By Sukalp Sharma


NEW DELHI – Bharat Petroleum Corp Ltd is aiming 2.40 trln rupees as net revenue from operations for 2019-20 (Apr-Mar), along with an operating margin of 2.5%, as per the annual memorandum of understanding inked between the state-owned refiner and its nodal petroleum ministry.


The 2.40-trln-rupee turnover aim and 2.5% target for operating margin are 'excellent' targets in the respective categories, as per the MoU, a copy of which was accessed and reviewed by Cogencis.


Targets in such performance MoUs between the government and central public sector undertakings are categorised as 'excellent', 'very good', 'good', 'fair', and 'poor'.


Bharat Petroleum's gross revenue from operations for 2018-19 stood at 3.38 trln rupees. However, it is not comparable to the topline target for 2019-20 as the latter is net of levies and excludes sales to other public sector oil marketing companies–Indian Oil Corp Ltd and Hindustan Petroleum Corp Ltd.


The 'good' category aim for Bharat Petroleum's net revenue from operations for the current fiscal is 2.36 trln rupees, while the 'very good' target is set at 2.38 trln rupees.


The 'good' category target for Bharat Petroleum's operating margin for the year has been set at 2.2%, while the 'very good' category aim is 2.4%. In the memorandum of understanding, the operating margin has been defined as "operating profit as a percentage of revenue from operations (net)".


For 2019-20, the refiner's capital expenditure aim under the 'excellent' category stands at 71 bln rupees, higher than the 64.83-bln-rupee target for the previous financial year. The 'good' category target for capital expenditure has been set at 62 bln rupees for the current financial year.


The capital expenditure targets exclude investments through Bharat Petroleum's subsidiaries and joint ventures.


The 'excellent' target for Bharat Petroleum's refinery throughput for the year has been set at 30.90 mln tn, against actual throughput of 31.01 mln tn in 2018-19. The 'good' category aim for refinery throughput is 30.50 mln tn.


The refinery throughput targets have been kept lower as the company's refineries are likely to see longer periods of planned shutdowns for fuel quality upgradation projects, a company official said.


Bharat Petroleum is targeting operational availability of its refineries in 2019-20 at 98% as per the 'excellent' category target. The 'good' category aim for operational availability of refineries for the current year is 96.5%.


At 1450 IST, shares of Bharat Petroleum were at 380 rupees on the National Stock Exchange, down over 3% from the previous close.  End


IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT


Edited by Mainak Moitra


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