BPCL Q4 Results Preview: Net profit likely to surge 61%, margin to expand by over 250 bps

BPCL Q4 FY24 Results Preview: State-run oil marketing company (OMC) Bharat Petroleum Corporation Ltd (BPCL) is all set to report its financial results for the quarter and the year ended March 31, 2024, on May 9. Analysts see the PSU OMC staging a strong financial performance for the January-March period driven by a steady rise in revenue and a higher gross refining margin (GRM). 

According to Zee Business research, BPCL is estimated to register a standalone net profit of Rs 5,474 crore for the March quarter, translating into a jump of 61.1 per cent compared with the previous three months. The analysts expect the PSU's fourth-quarter revenue to increase 4.7 per cent sequentially to Rs 1,20,970 crore.

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Bharat Petroleum's quarterly EBITDA is estimated to grow 46.9 per cent sequentially to Rs 9,146 crore, and its margin, a key measure of profitability, is pegged at 7.56 per cent, up by 256 basis points, according to the research. 

Zee Business analysts estimate the OMC's gross refining margin—a key measure of profitability for oil refining businesses—to improve to $14.3 per barrel in the January-March period from $13.4 per bbl in the fiscal third quarter.

The gross refining margin determines the amount of money a company earns from turning every barrel of crude oil into fuel. A higher GRM signifies better profitability and operational performance, and vice versa.

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BPCL Q3 FY24 Earnings: A summary

For the October-December period, the state-run OMC logged a 61.4 per cent quarter-on-quarter fall in standalone net profit to Rs 3,181.4 crore, according to a regulatory filing. 

Its revenue stood at Rs 1,29,984.8 crore for the Decmeber quarter as against Rs 1,16,657.3 crore for the previous three months.  

Zee Business analysts had estimated BPCL's third-quarter profit at Rs 3,155 crore and revenue at Rs 1,05,950 crore.

BPCL shares: Past performance

As of May 8, BPCL shares have rewarded investors with a return of 69 per cent in a year, sharply outperforming a 22 per cent rise in the Nifty50 index and in line with a 64 per cent surge in the Nifty Energy gauge.  

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