- 23 May 2023
- ICICI Securities
Bharat Petroleum Corporation Q4 Results 2023: Performance better than our estimates on profitability front
Bharat Petroleum Corporation Ltd | CMP: 304 | Market Cap: 66,032.06
Bharat Petroleum Corporation (BPCL) reported Q4FY23 results that were higher than our estimates on profitability front. While average GRMs were better than estimates, marketing margins were in line with estimates as per our understanding. The company has reported numbers post amalgamation with its subsidiaries BORL (Bharat Oman Refineries) and BGRL (Bharat Gas Resources) and numbers for the previous quarters too have been restated.
Q4FY23 Earnings Summary
Views: BPCL's operating profit improved QoQ due to strong refining margins and improvement in marketing segment performance . In the ongoing quarter, GRMs are likely to be subdued but be countered by strong marketing margins. However, we estimate GRMs to increase in H2FY24 on account of rise in demand. BPCL has also set a capital outlay of Rs1.4 lakh crore over next 5 years for expanding into petchem, renewable energy and CGD business.
Impact: Positive