BPCL Q3 Results Preview: State-run oil marketing firm to report profit in December quarter on easing crude oil prices

BPCL Q3 Results Preview: Bharat Petroleum Corporation Limited (BPCL) – a state-run oil marketing company – is expected to report profit for the October-December quarter of the financial year 2022-23 (Q3FY23) after registering loss in the last two quarters of the current fiscal.

BPCL’s net profit may come at Rs 1520 crore in Q3FY23 as per Zee Business research estimates as compared to loss of Rs 304 crore in the previous quarter of FY23. The net profit is mainly supported by the reduction in the price of crude oil, globally, it said.

The oil marketing company’s revenue may see a dip of around 6 per cent to Rs 1,08,100 crore in the December quarter against Rs 1,14,807.6 crore in September quarter of FY23.

Zee Business research estimates improvement in marketing margin, which is likely to support the overall profit and margins. The company’s margin in Q3FY23 is seen at 3.5 per cent from 1.25 per cent quarter-on-quarter (QoQ).

With overall earning numbers showing improvement QoQ, the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) of BPCL may grow more than two-and-half times to Rs 3800 crore in December quarter versus Rs 1434 crore in the September quarter of the same fiscal.

Due to maintenance work in the refinery, the increase in throughput is less, according to Zee Business research. Despite that it estimates 4 – 5 per cent surge in crude throughput. Similarly, a 4 per cent rise in the market sales volume is also expected.

In its expectations, a domestic brokerage firm Prabhudas Lilladher believes, “BPCL is likely to report operationally better results but without subsidies, losses will be higher QoQ due to diesel marketing loss.” The brokerage maintained a Buy rating on the stock with a target price of Rs 420 apiece.

Shares of BPCL was closed around 3 per cent lower to Rs 336.70 per share on the BSE. The counter in the last one year has declined over 15 per cent and it has gained merely 2 per cent in the last 6 months on improving global crude oil prices.

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