Shares of this small-cap miniratna stock associated with the ‘Refineries’ segment jumped approximately 18 percent in Wednesday’s trading session after the company announced financial results for Q4FY24, i.e., for the quarter ended March 2024.
With a market capitalization of Rs 16,349.73 crores, the stocks of Chennai Petroleum Corporation Limited (CPCL) started their trading session on Wednesday at Rs 934.30 and currently trade at Rs 1,097.95, gaining a whopping 18 percent compared to the previous closing levels of Rs 927.80 apiece.
Such a surge in the company’s share price was witnessed today after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), announced its financial results for the quarter ended March 2024.
On a sequential basis, the company reported an increase in its prime business indicators, viz, revenue from operations as well as after-tax profits.
The former rose from Rs 20,454 crores during Q3FY24 to Rs 20,823 crores during Q4FY24, and the latter, keeping the timeframe the same, took a shift from Rs 365 crores to Rs 628 crores exhibiting an increase of around 72 percent.
On a contrasting note, the company, on a YoY basis, reported a decrease in the abovementioned metrics with the operating revenues shifting down from Rs 21,350 crores during Q4FY23 to Rs 20,823 crores during Q4FY24, and the bottom-line numbers, during the same horizon, moving down from Rs 1,013 crores to Rs 628 crores.
Historically, the miniratna company, despite increased cost pressure annually, was able to maintain healthy margins and profitability ratios in FY22-23. The return ratios, viz, the return on equity (RoE) and return on capital employed (RoCE), were reported at decent numbers with the former reported at 54.54 percent and the latter at 54.27 percent.
Ms Dolly Khanna, one of the well-known ace investors based in India, has invested in the shares of CPCL. According to the latest data available for the March’24 quarter, she holds around 16.19 lakh equity shares of the company equivalent to a 1.09 percent stake.
Chennai Petroleum Corporation Limited is engaged in manufacturing and supplying petrol products in India. Deriving a majority of revenue from petroleum products, the company’s product portfolio includes motor spirit, superior kerosene oil, and liquefied petroleum gas (LPG) among others.
Written by Amit Madnani
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