Prabhudas Lilladher's research report on Bharat Petroleum Corporation
We change our FY23/24E estimates as we incorporate FY22 actuals. BPCL reported lower than expected Q4 results with standalone EBITDA of Rs42.4bn (+1%QoQ; PLe Rs 50.7bn) and PAT of Rs21.3bn (-13%QoQ; PLe Rs33.2bn), due to lower than expected marketing earnings as calculated marketing EBIDTA loss increased to Rs56.9bn in Q4 vis-à-vis gains of Rs31.4bn in Q3. For FY22, EBIDTA/PAT was at Rs161.9bn (-6%YoY) and Rs88.7bn (-30%YoY). We believe OMCs earnings will be hit by sharp jump in marketing losses, despite improvement in refining profitability.
Outlook
However, softening diesel spreads from recent highs of $45/bbl to ~$30/bbl will reduce marketing losses as more refiners come back from maintenance shutdown. Maintain BUY.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Read More
