Petronet LNG share price jumps 5% on Rs 500 crore net profit in Apr-Jun quarter; rallies 56% since March

With today’s gain, the stock price has rallied over 56 per cent from March lows of Rs 170.75 apiece

Petronet LNG share price jumped over 5 per cent to Rs 267.70 apiece on BSE after the company reported a consolidated net profit of Rs 499.79 crore in the April-June quarter. The consolidated net profit, however, declined 11 per cent as the company had reported a profit of Rs 561.94 crore in the corresponding quarter of the year-ago period. With today’s gain, the stock price has rallied over 56 per cent from March lows of Rs 170.75 apiece. “The operations of the company were not materially interrupted during the lockdown due to Covid-19 pandemic. Cost of material consumed has come down from 86.12% to 78.55% in Q1FY21. Overall the company posted a better than expected set of numbers for Q1FY21,” said Yash Gupta, Equity Research Associate, Angel Broking Ltd.

Research and brokerage firm Motilal Oswal Financial Services said that better-than-estimated volumes lead to marginal EBITDA beat. “1QFY21 EBITDA stood at INR 900 crore. The lower interest cost was offset by lower other income,” it added. The brokerage firm has given a buy rating to the stock post quarterly earnings announcement.

At 10.45 AM, Petronet LNG shares were trading 2.12 per cent higher at Rs 259.85 apiece, as compared to a 0.72 per cent rise in the benchmark S&P BSE Sensex. During the financial year 2019-20, the company has achieved a turnover of Rs 35,452 crore as against Rs 38,395 crore in 2018-19. The net profit during the year stood at Rs 2,698 crore as against Rs 2,155 crore in the previous year, according to the company’s annual report 2019-20.

The company reported profit before tax (PBT) at Rs 676.16 crore. Petronet LNG had posted PBT of Rs 839.59 crore in June 2019. The total revenue of the company during the quarter stood at Rs 4,951.95 crore, down 43 per cent against Rs Rs 8,717.85 crore in the corresponding period of the preceding fiscal. Petronet LNG reported the basic earnings per share (EPS) at Rs 3.33 against Rs 3.75 in the year-ago period.

Earlier, the company informed that post lifting of the lockdown, Regasified LNG demand recovered gradually. Since the first week of June 2020, Dahej terminal was operating at 100% capacity and Kochi terminal was operating at 20% capacity.