Strong Q4 performance, robust cash flows and outlook to support BPCL stock

Attractive valuations and robust cash flows are the other positives

Public sector undertaking oil marketing major BPCL beat Street expectations and surprised analysts with excellent results. The company reported an operating profit of Rs 11,100 crore in the fourth quarter of the 2022-23 financial year or Q4FY23 (vs Rs 4,200 crore quarter-on-quarter or QoQ and Rs 5,900 crore year-on-year or YoY).
 
The beat was driven by far better than expected gross refining margins (GRM). The adjusted net profit was at Rs 7,800 crore (Rs 2,000 crore QoQ, Rs 2,500 crore YoY) while the reported bottom line was Rs 6,500 crore, as BPCL recorded an impairment of Rs 1,400 crore