- 27 Jul 2023
- ICICI Securities
BPCL REPORTS STRONG GRMS AND MARKETING MARGINS
BPCL - 313 Change: -4.30 (-1.36 %)News: Q1FY24 revenues de-grew 7.3% YoY to Rs 128257 crore, led by lower crude oil prices (however, refinery throughput and marketing sales were up 7% and 8% respectively). GRMs came strong at US$ 12.64 per barrel (vs consensus estimates of US$11) and we estimate marketing margins in the range of Rs7-8 per litre on blended basis. Thereby, EBITDA came at Rs 15810 crore vs a loss of Rs 5865 crore in base quarter (higher marketing losses) and vs estimate of Rs 10700 crore. Subsequently, PAT arrived at Rs 10551 crore vs a loss of Rs 6263 crore in Q1FY23.
Views: We expect GRMs to strengthen from H2 onwards, as Chinese refineries start drawing higher crude oil imports. Although, Marketing margins are expected to have narrowed from Q1 levels (due to movement in crude from US$72-73 to US$81-83 levels), it still continues to hover comfortably in positive territory.
Impact: Positive