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Chennai Petroleum Corp tumbles after dismal Q1 performance

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Capital Market
Last Updated : Jul 23 2021 | 11:50 AM IST

Chennai Petroleum Corporation slumped 5.67% to Rs 125.50 after the company's standalone net profit dropped 80.2% to Rs 53.73 crore in Q1 FY22 from Rs 271.63 crore in Q1 FY21.

Net sales during the quarter increased by 181.3% YoY to Rs 8,166.46 crore. As compared to Q4 FY21, the company's net profit and net sales are lower by 76.8% and 6.5%, respectively.

Total expenditure jumped 245% to Rs 7,875.17 crore in Q1 FY22 over Q1 FY21, due to a surge in raw material costs.

Other expenditure includes exchange loss of Rs 26.93 crore for the quarter ended Jun'21. The company had receded an exchange gain of Rs 5.85 crore in Apr- Jun 2020 and an exchange gain of Rs 22.10 crore in Jan-Mar 2021, which were included under other income.

Profit before tax in Q1 FY22 stood at Rs 73.85 crore, down by 82.8% from Rs 430.03 crore in Q1 FY21.

Average gross refining margin (GRM) for the period April-Jun 2021 is $5.68 per barrel as against $ 11.94 per barrel in April-Jun 2020.

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Crude throughput was 2.035 MMT in Q1 FY22, up by 53.2% from 1.328 MMT in Q1 FY21. It is, however, lower by 22.9% as compared with 2.639 MMT in Q4 FY21.

The crude throughput has been adversely impacted during the current quarter on account of the reduction in demand arising out of the COVID -19 situation. However, the reduction in demand was relatively benign as compared to that of the previous year with corresponding impact on the crude throughput levels, the company said in a statement.

Chennai Petroleum Corporation refines crude oil and markets petroleum and petrochemical products, including lube oil base stocks, aviation turbine fuel, propane, propylene and polybutene feedstock. The group operates two refineries, the Cauvery Basin refinery and the Manali refinery. Indian Oil Corporation held 51.89% stake in the company as on 30 June 2021.

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First Published: Jul 23 2021 | 11:14 AM IST

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