CHENNAI PETROLEUM Announces Quarterly Results (4QFY19); Net Profit Down 116.5%

Fri, 10 May

CHENNAI PETROLEUM has announced its results for the quarter ended March 2019. Here is a detailed performance review of the same:

CHENNAI PETROLEUM Quarterly Financials

No. of Mths Qtr. Ending		3 Mar-18*	3 Dec-18*	3 Mar-19*	QoQ Change	YoY Change
Net Sales	Rs m	127,101	120,055	127,652	6.3%	0.4%
Other income	Rs m	90	99	117	18.5%	30.2%
Turnover	Rs m	127,191	120,154	127,768	6.3%	0.5%
Expenses	Rs m	123,552	123,508	125,859	1.9%	1.9%
Gross profit	Rs m	3,549	-3,454	1,792		-49.5%
Depreciation	Rs m	1,107	1,105	1,308	18.4%	18.1%
Interest	Rs m	787	1,091	1,067	-2.2%	35.6%
Profit before tax	Rs m	1,744	-5,551	-466		-126.7%
Tax	Rs m	-37	-1,882	-171
Profit after tax	Rs m	1,781	-3,669	-294		-116.5%
Gross profit margin	%	2.8	-2.9	1.4
Effective tax rate	%	-2.1	33.9	36.8
Net profit margin	%	1.4	-3.1	-0.2

Year-on-Year Performance:

• The company's operating income during the quarter grew 0.4% on a year-on-year (YoY) basis. The expenses were up by 1.9% YoY during the same period.
• The company's operating profit declined by 49.5% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 1.4% in 4QFY19 as against 2.8% in 4QFY18.
• Depreciation charges increased by 18.1% and finance costs increased by 35.6% YoY, respectively.
• Other income increased by 30.2% YoY during the quarter.
• Net profit for the quarter declined by 116.5% YoY. Net profit margins during the quarter declined from 1.4% in 4QFY18 to -0.2% in 4QFY19.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 6.3% on a quarter-on-quarter (QoQ) basis. The expenses were up by 1.9% QoQ during the same period.
• The company's operating profit increased by 151.9% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 1.4% in 4QFY19 as against 2.9% in 3QFY18.
• Net profit for the quarter increased by 92.0% QoQ, while net profit margins increased from -3.1% in 3QFY18 to -0.2% in 4QFY19.

To see how CHENNAI PETROLEUM has performed over the last eight quarters, please visit here.

CHENNAI PETROLEUM Share Price Performance

Over the last one year, CHENNAI PETROLEUM share price has moved up from Rs 302.3 to Rs 234.5, registering a Loss of Rs 67.8 or around 22.4%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 14,694.3 (down 0.2%). Over the last one year it has moved up from 14,596.2 to 14,694.3, a gain of 98 points (up 0.7%).

Overall, the S&P BSE SENSEX is up 6.6% over the year.

Current Valuations

At the current price of Rs 234.5, the price to book value (P/BV) ratio of CHENNAI PETROLEUM stands at 0.9 times.