BPCL Q2FY22 preview: Street expects topline growth of 8.6%

BPCL is expected to announce its second-quarter results on Friday and the street is expecting a good set for all the oil marketing companies (OMCs). This is because crude oil prices have risen and averaged around USD 73 per barrel. This helps higher inventory gains for these companies. Moreover, the  Singapore gross refining margin (GRM) at USD 3.7 per barrel is the highest level in seven quarters as of now.

An analyst poll conducted by CNBC-TV18 shows that on the topline, the street expects a growth of 8.6 percent on a quarter on quarter. EBITDA is expected to go up by 11 percent, margins should see a mild expansion to the tune of 10 basis points and profits will go up by 24 percent.

This time around EBITDA growth will be driven by both core refining and core marketing margins, they will be driven by higher throughput and higher marketing sales. So reported refining margins are expected to increase to USD 4.7 per barrel.