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These Two Maharatna PSUs Tank Upto 6% on Glum Q1, Negative EBITDA: Rationale

Stock Markets Aug 08, 2022 05:09
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By Malvika Gurung

Investing.com -- Shares of the state-owned fuel retailers Bharat Petroleum (NS:BPCL) and Hindustan Petroleum (NS:HPCL) tanked up to 6% on Monday, following poor earnings results for the June 2022 quarter due to eroding marketing margin in the period.

The Maharatna companies posted huge YoY losses in the June quarter despite higher sales, on the back of a freeze in petrol and diesel prices since 4 months.

BPCL reported a net loss of Rs 6,148 crore during the Apr-Jun quarter, compared to a profit of Rs 3,214 crore in the year-ago period. It incurred a forex loss of Rs 966 crore during the quarter due to volatility in exchange rates and the cost of materials rallied 137.3% YoY to Rs 63,615 crore.

Its revenue from operations surged 54% YoY to Rs 1.3 lakh crore yet posted a negative EBITDA of Rs 5,461.56 crore in the reporting quarter versus a positive figure of Rs 5,308.5 crore in the year-ago period.

HPCL reported its highest-ever net loss of Rs 10,196.9 crore in Q1 FY23 compared to a net profit of Rs 1,795 crore in Q1 FY22 even though net sales jumped 58% YoY to Rs 1.14 lakh crore and total expenses jumped 78.6% YoY to Rs 135,370.5 crore in the period.

It reported a negative operating margin of 11.19% in Q1 versus a positive operating margin of 2.65% in the year-ago period.

State-owned retailers Indian Oil (NS:IOC), BPCL and HPCL have not revised/raised the prices of petrol, diesel and domestic LPG in 124 days despite international crude oil prices shooting to multi-year record highs during the period, aiding the government's target of taming the soaring inflation.

Read Also: Record Losses - Here’s Why State-Owned OMCs BPCL, IOL & HPCL Have Languished in Q1

These Two Maharatna PSUs Tank Upto 6% on Glum Q1, Negative EBITDA: Rationale
 

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Bipin Kochar
Bipin Kochar Aug 08, 2022 8:50
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Shocking performance - Government must act swiftly against their management to restore the credibility of Maharatna tag
 
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