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Petronet turns volatile after weak QoQ performance

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Capital Market
Last Updated : Feb 11 2020 | 10:50 AM IST

Shares of Petronet LNG fell 0.76% to Rs 268.80 after the company reported weak quarter-on-quarter (QoQ) results after market hours on Monday, 10 February.

On a consolidated basis, Petronet LNG reported 37.63% decline in net profit to Rs 679.22 crore on 4.82% decline in net sales to Rs 8910.23 crore in Q3 December 2019 (Q3 FY20) over Q2 September 2019 (Q2 FY20).

On a year-on-year (YoY) basis, the company reported 15.8% rise in net profit and 11.8% decline in net sales in Q3 FY20 over Q3 December 2018 (Q3 FY19). Profit before tax (PBT) rose 8.8% to Rs 905.75 crore in Q3 FY20 compared with Rs 832.70 crore in the same period last year.

During the quarter, total expenses stood at Rs 7802.66 crore, down by 15.6% from Rs 9249.66 crore in the December quarter last year. This primarily on account of lower raw material costs which stood at Rs 7618.89 crore in Q3 FY20, down by 16.27% year-on-year (YoY).

Interest costs surged to Rs 94.02 crore in Q3 FY20 from Rs 21.54 crore in Q3 FY19.

Prabhat Singh, managing director & CEO, Petronet LNG, was quoted by the media saying that the company processed 233 trillion British thermal units (TBtus) of LNG in the quarter as compared to 202 TBtus in Q3 of 2018-19. Its flagship Dahej import facility in Gujarat operated at around 100% of its nameplate capacity and processed 222 TBtus of LNG, up from 197 TBtus a year back.

"The significant increase in profit year to date is due to higher volumes processed owing to commercial efficacy and better efficiency in operations," he reportedly said.

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Petronet LNG primarily operates in the business of import and processing of liquefied natural gas (LNG).

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First Published: Feb 11 2020 | 10:13 AM IST

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