Chennai Petro slides after Q2 PAT tumbles 57% YoY to Rs 27.88 cr

Chennai Petroleum Corporation tumbled 10.78% to Rs 208.90 after the company's standalone net profit slumped 57.4% to Rs 27.88 crore in Q2 FY23 as against Rs 65.45 crore recorded in Q2 FY22.

Net sales zoomed 120.3% to Rs 19,508.82 in quarter ended 30 September 2022 from Rs 8,856.06 crore posted in the corresponding quarter previous year.

The Government of India with effect from 1 July 2022, levied duties on export of petroleum products at the rates notified on fortnightly basis, which have been reduced in the Refinery Transfer Pricing. This has resulted in lower revenue and profitability for the quarter, the company said.

Profit before tax stood at Rs 35.50 crore in Q2 FY23, declining 60.3% as against Rs 89.47 crore reported in Q2 FY22.

The company's total expenses spiked 75.84% year on year to Rs 22,870.80 crore in Q2 FY23. Cost of raw materials consumed soared 132.42% YoY to Rs 18,842.33 crore in Q2 FY23.

Crude throughput in Q2 FY23 stood at 2.887 MMT, rising 48.51% from 1.944 MMT reported in the same period last year. Average gross refining margin (GRM) for Q2 FY23 stood at $4.44 per bbl as against $5.83 per barrel posted in the corresponding period a year ago, down 23.84% on a YoY basis.

Chennai Petroleum Corporation (CPCL), one of the leading group companies of Indian Oil corporation, is one of the most complex refineries of its kind in the country, producing an array of value-added petroleum products. As on 30 September 2022, Indian Oil Corporation held 51.89% stake in CPCL.

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