Maharatna Central Public Sector undertaking engaged in producing, refining, and distributing petroleum products, and providing fuel services, gas, lubricants, and many more jumped 4 percent in the day’s trade following capital outlay plans of Rs. 1.7 Trillion.
Price Action
With a market capitalization of Rs. 1,48,332 Crores, the shares of Bharat Petroleum Corporation Limited were trading at Rs. 342.10 per equity share, up 3 percent from its previous day’s close price of Rs. 332.55.
What Happened
Bharat Petroleum Corporation which is India’s 2nd largest Oil Marketing Company with a domestic sales volume of ~51 MMT and a market share of 25.37 percent plans to invest Rs 1.7 Lakh Crores over the next five years to grow its core oil refining and fuel marketing business as well as in ‘future big bets’ of petrochemicals and green energy, said its chairman G Krishnakumar.
As per the latest annual report, BPCL is now implementing the first phase of a multi-decade aspirational journey in the form of ‘Project Aspire’ – its five-year strategic framework that is based on two fundamental pillars – ‘Nurturing the Core’ and ‘Investing in Future Big Bets
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Further, G Krishnakumar added “Our mid-term strategy is on a continuum. While we remain committed to growing our core businesses, which include refining and marketing petroleum products and upstream, we are equally focused on our big bets comprising petrochemicals, gas, green energy, non-fuel retail, and digital.
“Project Aspire, with a planned capex outlay of around Rs 1.70 trillion over five years, will enable us to create long-term value for our stakeholders while preserving our planet for future generations,” he said
“A cornerstone of our long-term strategy, Project Aspire, with a Rs 1.70 trillion investment, marks the initial phase of our multi-decade odyssey to shape the energy of tomorrow. This, coupled with our robust balance sheet, fuels our ambition to lead the energy transition.”
“BPCL has drawn a net-zero roadmap, which encompasses renewable power, green hydrogen, compressed biogas, carbon capture, utilization, and storage (CCUS), efficiency improvement, and the offsets procurements. This would require a phased capital outlay of approximately Rs 1 lakh crore till 2040, and the company is geared for the same,” he said.
About the Company
Bharat Petroleum Corporation Limited is engaged in producing, refining, and distributing petroleum products, and provides fuel services, gas, lubricants, and many more.
It is India’s 2nd largest Oil Marketing Company with a domestic sales volume of ~51 MMT and a market share of 25.37 percent during FY24 and it has India’s 3rd largest Refining Capacity of about 14 percent of India’s refining capacity in 2023. It targeting net zero carbon emissions from its operations by 2040.
Infrastructure
It has 3 refineries with a 35.3 MT Refining capacity and 0.33 MMT Petrochemicals capacity with 80 retail depots, 53 LPG Bottling plants, and 4 Lube Blending plants. It has a distribution pipeline network of 3,537 km of Specific & Multi Product Pipeline Network including Crude Pipelines and 29 MMTPA Design capacity of Pipeline Network
Coming to customer access it has 21,840 retail outlets, 6,252 LPG Distributors, 2,034 CNG Outlets, 52 Gas GAs, 8000+ Industrial Customers, and 63 Aviation service stations
As for its green energy assets it has 253 MW of renewable assets of which 77 MW is operational and 176 MW is under construction, 5MW of Green hydrogen plant underway in the Bina refinery, 26 CBG plants planned in the near term, and 200KLPD of Bioethanol plant.
Financials and Ratios
Its Revenue from operations grew by 0.10 percent from Rs. 1,12,985 Crores in Q1FY24 to Rs. 1,13,095 Crores in Q1FY25, accompanied by profits of Rs. 10,644 Crores to Rs. 2842 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 41.9 percent, and a return on capital employed (ROCE) of 32.1 percent. It has a debt-to-equity ratio of 0.72.
Written by: Bharath K.S
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