BPCL Q1 Review - Play On Privatisation: ICICI Securities
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ICICI Securities Report
Bharat Petroleum Corporation Ltd.’s Q1 FY22 recurring earnings per share is down 29% YoY as hit from YoY plunge in net marketing margin exceeded gains from YoY rise in reported gross refining margin and product inventory gain.
Q1 consolidated recurring EPS is down 27% YoY (it is not really comparable as Numaligarh Refinery Ltd. boosted Q1 FY21 EPS, but BPCL divested its stake in March 2021).
Auto fuel net marketing margin is on track to be in line with our FY22E estimate of Rs 2.5/litre or higher.
BPCL’s core gross refining margin remains weak and diesel cracks recovery is key to GRM rising to our FY22E estimate of $3.5/barrel of oil.
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