BPCL Q3 Results Preview: Net profit likely to drop 63% sequentially on high base

State-run oil marketing company Bharat Petroleum Corporation Ltd (BPCL) is all set to report financial results for the October-December period (Q3 FY24) on Monday, January 29. Analysts widely expect a fall in refining margin to affect the company’s profitability though its growing marketing sales volumes may lend some support. 

According to Zee Business research, BPCL is estimated to report a standalone net profit of Rs 3,155 crore for the fiscal third quarter, translating into a fall of 63 per cent compared with the previous three months on account of a high base. The analysts peg the state-run firm’s revenue for the quarter ended December 31, 2023, at Rs 1,05,950 crore, as against Rs 1,02,985.6 crore for the July-September period. 

Zee Business analysts estimate BPCL’s quarterly earnings before interest, taxes, depreciation and amortisation (EBITDA) to stand at Rs 5,480 crore, down 57.5 per cent on a quarter-on-quarter basis. They peg the company’s margin to slump to as low as 5.17 per cent for the third quarter of the current financial year, as against 13 per cent for the previous three months. 

According to the research, BPCL’s marketing sales volumes is estimated to expand 5.0 per cent over the July-September period. 

How BPCL fared in July-September (Q2 FY24)

BPCL staged a better-than-expected performance for the fiscal second quarter. Its standalone net profit came in at Rs 8,501.2 crore with an -8.8 per cent sequential decline in revenue to Rs 1,02,986 crore for the July-September period, according to a regulatory filing.

Its margin came in at 12.5 per cent for the fiscal second quarter.

Zee Business analysts had pegged the oil marketing firm’s quarterly net profit at Rs 6,370 crore, revenue at Rs 1,17,713 crore, and margin at 9.0 per cent.

BPCL shares: Past performance

As of January 25, BPCL shares have rewarded investors with a return of 41 per cent in a year, sharply outperforming a gain of 21 per cent each in the Nifty50 and Nifty Oil & Gas indices. 

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