BPCL Q1 preview: Profit likely to decline 14.8% QoQ on weak GRM & marketing margins

BPCL Q1 preview: Bharat Petroleum Corporation Limited- the state run oil marketing company (OMC) is scheduled to release its first quarter results later on Friday. Zee Business research desk estimates the company’s standalone profit to decline 14.8 per cent sequentially to Rs 3,600 crore as against Rs 4224.18 crore reported in the previous quarter as the company’s gross refining margins (GRMs) and marketing margins are likely to take a hit quarter-on-quarter (QoQ).

Notably, the company in the previous January-March period posted an exceptional loss of Rs 1,798 crore.

Revenue at the downstream oil company is also seen to take a hit by 2.76 per cent QoQ and is expected at Rs 1,13,340 crore. In the March ended quarter, the company posted standalone revenue of Rs 1,16,555.1 crore. The company’s EBITDA or earnings before interest, taxes, depreciation, and amortization is expected to substantially decline by as much as 29.4 per cent from Rs 9,213 crore reported in Q4 to Rs 6,500 crore in the quarter under review.

Margin during the review quarter is expected to fall to 5.7 per cent, a 2.2 per cent or 220 bps reduction QoQ.

Furthermore, refining throughput is seen to remain steady during the quarter. Motilal Oswal projected a refinery throughput of 10.3 mmt and GRM of $8/bbl, with a blended gross marketing margin of Rs 4/litre.

BPCL share price

Ahead of its results today, shares of the company traded with a cut of over 3 per cent at Rs 306.95 per share. The stock in the last one year has zoomed 62 per cent.