Petronet LNG climbs over 6% as Q2 net profit surges 90% YoY

Shares of Petronet LNG climbed as much as 6.37 per cent to Rs 297 apiece on the BSE in the early morning deals on Wednesday, a day after the company reported nearly doubling of net profit in September quarter on the back of improved margins.

The company's net profit during July-September period stood Rs 1,089 crore, up 90 per cent against Rs 572.89 crore posted in the year-ago period. 

Revenue from operations, however, slipped to Rs 9,361.18 crore from Rs 10,745.34 crore in the second of the previous fiscal year.

That apart, the company's board of directors also approved special interim dividend of Rs 5.50 per share for 2019-20 fiscal year.

Basic earnings per share (EPS) of the company increased to Rs 7.26 against Rs 3.82 in the corresponding quarter of the previous fiscal. 

"The company elected to exercise the option of lower tax rate of 25.17 per cent (announced last month by the government)," it said.

"Accordingly, the deferred tax liabilities (net) (DTL) as at June 30, 2019 and estimate of tax expense for the quarter ended June 30, 2019 have been remeasured and resultant impact of Rs 376 crore on DTL and Rs 70 crore respectively pertaining to previous quarter have been recognised in the current quarter," the statement added. 

At 10:12 am, the stock was trading 5.30 per cent higher at Rs 294 apiece on the BSE. In comparison, the S&P BSE Sensex was trading 126 points or 0.32 per cent higher at 39,958 levels.