Chennai Petroleum Corporation reports 45% decline in PAT; stock slips over 10%

Shares of Chennai Petroleum Corporation, an Indian Oil subsidiary, slipped over 10 per cent in Tuesday's trading session to touch the day's low at Rs 400 apiece on the BSE. The stock came under selling pressure after the company posted a 45 per cent decrease in profit after tax (PAT) for the June quarter (Q1FY24). At around 10 AM, shares of Chennai Petroleum Corporation were trading 7.29 per cent lower at Rs 410 apiece on the BSE. The market capitalisation of the company stood at Rs 6,105.37 crore.

Chennai Petroleum Corporation Q1 results 

The petroleum refineries corporation reported a 45.4 per cent dip in profit after tax (PAT) at Rs 548 crore for the June quarter against Rs 1,004 crore recorded in the March 2023 quarter. The company logged a revenue of Rs 14,745 crore against Rs 18,009 crore in Q4FY23, down 18 per cent quarter-on-quarter (QoQ). 

The company's margin, a key measure of profitability, stood at 6.4 per cent in the June quarter, against 9 per cent in Q4 FY23. The earnings before interest, taxes, depreciation, and amortisation, or EBITDA, of the company stood at Rs 950 crore against 1,626 crore, down 42 per cent QoQ.

What do analysts suggest?

"The chart pattern of the stock is strong even though the numbers are disappointing. Buying is expected at Rs 400 to Rs 405 levels. The company has announced a dividend, which can be a big trigger for the stock," said Zee Business Panellist Himanshu Gupta.

Chennai Petroleum Corporation share price: Past performance 

So far in 2023, shares of Chennai Petroleum Corporation have given impressive over 92 per cent returns against the headline index NSE's rise of over 8 per cent. 

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