{"id":338780,"date":"2020-02-24T12:53:05","date_gmt":"2020-02-24T07:23:05","guid":{"rendered":"http:\/\/infralive.com\/web\/?p=338780"},"modified":"2020-02-24T12:53:05","modified_gmt":"2020-02-24T07:23:05","slug":"analyst-corner-hold-on-bpcl-keep-faith-in-refining-turnaround","status":"publish","type":"post","link":"https:\/\/infralive.com\/web\/analyst-corner-hold-on-bpcl-keep-faith-in-refining-turnaround\/","title":{"rendered":"Analyst Corner: \u2018Hold\u2019 on BPCL; keep faith in refining turnaround"},"content":{"rendered":"<p>BPCL\u2019s Q3FY20 net of Rs 12.6 bn was well below JEFe hurt by weak operational performance yet again. Core Ebitda missed by 36%, e.g., with refining and marketing margins weak with share losses in diesel too although debt did ease q\/q. Looking ahead, we still hope for that elusive refining turnaround with upside risk to auto fuel marketing margins too but its richer-than-peer valuations that already bake in some of the divestment upside predicates our \u2018hold\u2019 rating.<\/p>\n<p>BPCL\u2019s Q3FY20 Rs 12.06 bn standalone net came 41% below JEFe despite inline inventory gains (Rs 5.4bn) and forex losses (Rs 0.9 bn). Lower other income (-32% q\/q) hurts as did higher-than-expected interest costs although debt did ease Rs 17 bn q\/q helped by lower w-capital and ~Rs 9 bn in subsidy payments late in December.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>BPCL\u2019s Q3FY20 net of Rs 12.6 bn was well below JEFe hurt by weak operational performance yet again. Core Ebitda missed by 36%, e.g., with refining and marketing margins weak with share losses in diesel too although debt did ease q\/q. Looking ahead, we still hope for that elusive refining turnaround with upside risk to auto fuel marketing margins too but its richer-than-peer valuations that already bake in some of the divestment upside predicates our \u2018hold\u2019 rating. BPCL\u2019s Q3FY20 Rs 12.06 bn standalone net came 41% below JEFe despite inline inventory gains (Rs 5.4bn) and forex losses (Rs 0.9 bn). [&hellip;]<\/p>\n","protected":false},"author":44,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[130,195,138],"tags":[],"class_list":["post-338780","post","type-post","status-publish","format-standard","hentry","category-newspapers","category-oil-gas-the-financial-express","category-the-financial-express"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/338780","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=338780"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/338780\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=338780"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=338780"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=338780"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}