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Chennai Petroleum stock up 17% on strong Q4 results, dividend announcement

Chennai Petroleum stock price: Chennai Petroleum Corporation stock soared 16.5 per cent to Rs 1,081.65 apiece, also its fresh record high, on the BSE in Wednesday's intraday trade

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SI Reporter New Delhi

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Chennai Petroleum Corporation stock price soared 16.5 per cent to Rs 1,081.65 apiece, also its fresh record high, on the BSE in Wednesday's intraday trade after the energy firm posted solid January-March quarter result (Q4FY24). That apart, the company's 100 per cent rise in dividend payout further boosted investor sentiment.

At 1:30 PM, Chennai Petroleum Corporation share price was quoting 16 per cent higher at Rs 1,075.5 per share as against a 0.4 per cent uptick in the benchmark S&P BSE Sensex.

On Wednesday, April 24, 2024, Chennai Petroleum reported a whopping 71 per cent quarter-on-quarter (Q-o-Q) rise in consolidated net profit at Rs 627.89 crore vs PAT of Rs 365.3 crore posted in the December quarter. On a yearly basis, the profit was down from Rs 1,012.8 crore. 

Revenue from operations came in at Rs 20,822.95 crore as against Rs 20,453.94-crore revenue reported in Q3FY24, and Rs 21,350.05 crore in Q4FY23.

Earnings Before Interest, Tax, Depreciation and Amortisation (Ebitda) for the quarter grew 53.2 per cent Q-o-Q to Rs 1,042 crore, while margin expanded to 5.88 per cent from 3.91 per cent in December.

On the dividend front, the Indian Oil Corporation-subsidiary said that it will pay a final dividend of Rs 55 per share for FY24. 

"The board of directors of the company has recommended an equity dividend (final) of 550 per cent for financial year 2023-2024 i.e, Rs 55 per equity share of a face value Rs 10 each on the paid-up share capital, subject to the approval of shareholders at the ensuing annual general meeting of the company," the company said in an exchange filing.

Total dividend payout for the quarter, it said, will be Rs 819 crore, which is 30 per cent of its full year net profit of Rs 2,711 crore. The payout is double of what the company announced last year, which was Rs 27 per share.

Chennai Petroleum Dividend record date, however, will be finalised later.

Chennai Petroleum Corporation Limited (CPCL) is one of the leading group companies of Indian Oil, designed to produce fuels and lubes base stock. The refinery was established with a capacity of a 2.5 million metric tonnes per annum (MMTPA), which has increased to 10.5 MMTPA capacity at present.

CPCL has one of the most complex refineries of its kind in the country, producing an array of value-added petroleum products. It also pioneered key initiatives in several areas such as process optimisation, technology absorption, energy conservation, waste land reclamation and environment management.

On the bourses, the stock has outperformed the market so far in the current calendar year with a near 4-per cent rise in the stock price. By comparison, the benchmark S&P BSE Sensex index has added little over 2 per cent during the period. 

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First Published: Apr 24 2024 | 1:39 PM IST

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