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Chennai Petroleum Corporation Q1 net profit shrinks 76% to Rs 548 crore

In the latest quarter, revenue from operations reduced by 35 percent to Rs 17,985 crore year-on-year from Rs 27,449 crore in the year-ago quarter

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Representative Image (Illustration: Ajay Mohanty)

Subhayan Chakraborty New Delhi

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Indian Oil-subsidiary Chennai Petroleum Corporation Limited (CPCL) saw net profit shrink 76 per cent year-on-year to Rs 548.32 crore in the first quarter (April-June) of FY24 (2023-24). 

On a sequential basis, net profit fell 45.4 percent from the Rs.1004 crore earned in the fourth quarter of FY23.

The company blamed tumbling average gross refining margins (GRM) which tumbled to Rs 8.33 per barrel during the quarter as compared to Rs 25 per barrel in Q1 of FY23 for the fall in earnings. GRM is the amount refiners earn from turning every barrel of crude into refined fuel products.

In the latest quarter, revenue from operations reduced by 35 percent to Rs. 17,985 crore year-on-year from Rs 27,449 crore in the year ago quarter.

However, the crude throughput for the latest quarter was not much lower, coming in at 2.67 million tonnes, slightly down from 2.88 million tonnes in Q1 FY23.

The company had faced flak for not being able to quickly plug a leakage on an underwater crude pipeline on the Nagapattinam coast of Tamil Nadu earlier this year.

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First Published: Jul 24 2023 | 10:49 PM IST

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