Chennai Petroleum Corporation Ltd (CPCL) shares dropped more than 10% following the release of its disappointing Q2 FY25 results. The company reported a steep decline in revenue and profitability compared to the same period last year, causing investor concern.
Key Financial Highlights (Q2 FY25):
Revenue from Operations: ₹14,425 crore, down 28% from ₹20,010 crore in Q2 FY24.
Total Expenses: ₹15,305 crore, compared with ₹18,427 crore in Q2 FY24.
Loss Before Exceptional Items and Tax: ₹857 crore, in contrast to a profit of ₹1,588 crore in the year-ago quarter.
CPCL processed 2.098 million tonnes of crude during the quarter, down from 3.049 million tonnes in the corresponding quarter of the previous fiscal year. For the first half of FY25, the company reported a net loss of ₹287 crore, significantly lower than the net profit of ₹1,739 crore in H1 FY24.
Gross Refining Margin (GRM) Drop:
The company’s average GRM for H1 FY25 stood at $2.93 per barrel, a sharp decline from $10.34 per barrel in the same period last year. This reduction was attributed to lower product cracks in international markets and maintenance shutdowns of refinery units during the quarter, further weighing on the company’s performance.
As of 11:32 am, Chennai Petroleum shares were trading 10.06% lower at Rs 791.00 on the NSE.
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