Bharat Petroleum Q4 Results Preview: Profit May Rise 57%, Margins To Be Healthy
While BPCL's revenue growth is expected to be flat sequentially, margin is expected to expand by 210 basis points.
Bharat Petroleum Corp. might post strong fourth-quarter earnings, aided by gross refining and marketing margins. Net profit of the public sector undertaking may rise 57% quarter-on-quarter to Rs 5,341.9 crore in the quarter ended March 2024, according to Bloomberg consensus estimates as of May 2.
While the oil marketer's revenue growth is expected to be flat sequentially, margins are expected to expand by 210 basis points.
BPCL Q4 Results Estimates (Standalone, QoQ)
Revenue may rise 1.4% to Rs 1,17,109.6 crore.
Ebitda may rise 40.8% to Rs 8,765.79 crore.
Margin may expand to 7.5% vs 5.4%.
Net profit may rise 57% to Rs 5,341.9 crore.
Brokerage View: Financial Metrics
Nomura expects Bharat Petroleum to deliver a strong fourth quarter. The company is set to benefit from the sequential increase in refining margins, robust 65% quarter-on-quarter rise in marketing margins to above-normative levels of Rs 4.8/liter, and inventory gains on the back of higher crude prices, the brokerage said.
It expects overall Ebitda to rise 40% sequentially to Rs 8,730 crore.
Dolat Capital expects sequential improvement in crude throughput and supernormal gross marketing margins to support earnings growth for the oil marketer in Q4. While the brokerage expects a 1.6% quarter-on-quarter fall in revenue, Ebitda and net profit are estimated to rise over 32% during the quarter.
Gross Margins
Prabhudas Lilladher Pvt. expects Bharat Petroleum to report strong operating results aided by a good set of refining and marketing margins.
The brokerage estimates Bharat Petroleum's average gross refining margins for the quarter to be at $14 per barrel, while blended gross refining margins (petrol and diesel) are expected to be at Rs 3.6 per liter. The healthy gross refining margins are on the back increased average Singapore GRMs for the quarter to $7.4 per barrel.
Nomura expects Bharat Petroleum's refining margins to increase due to the increase in gasoline and diesel spreads, which will be further aided by inventory gains. The brokerage estimate refining margins of $15.9 per barrel.
