homemarket Newsstocks NewsWeak earnings drag Chennai Petroleum to worst day in four months

Weak earnings drag Chennai Petroleum to worst day in four months

Shares of Chennai Petro declined the most in a single day since June this year.

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By CNBCTV18.com Oct 27, 2022 2:58:34 PM IST (Published)

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Weak earnings drag Chennai Petroleum to worst day in four months

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Chennai Petroleum Corporation Ltd. shares plunged over 15 percent intraday on Thursday after the company's operating profit nearly eroded during the September quarter.


Revenue for the quarter declined 16 percent to Rs 19,508 crore while it barely managed to remain profitable. Net profit declined 99 percent to Rs 28 crore from Rs 2,358 crore during the June quarter.
The company attributed the drop in revenue due to the imposition of duties on exports of petroleum products, starting July 1.
Consolidated EBITDA also declined 93 percent from the previous quarter to Rs 228 crore while the operating margin fell to 1.2 percent from 14.7 percent in June.

Gross Refining Margin or the difference between the value of the product leaving the refinery from when it enters dropped to $4.44 per barrel from $25.04 per barrel quarter-on-quarter.

Shares of Chennai Petroleum are trading 12 percent lower as of 1:30 PM at Rs 206.60. This is the stock's biggest single-day drop since June this year.

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