CPCL shares plunge 18% on Rs 556 crore Q3 loss

NEW DELHI: Chennai Petroleum Corporation (CPCL) shares plunged 18 per cent on Wednesday, after the company reported a loss of Rs 556.44 crore for the December quarter.

CPCL had reported a net profit of Rs 290.58 crore for the corresponding quarter last year.

While a fall in international oil prices meant the cost of materials consumed dropped over 35 per cent to Rs 5,470.08 crore, CPCL's excise duty payout almost doubled to Rs 5,578.39 crore, the company said in a stock exchange filing. It did not give reasons.

Following the development, the stock fell 17.95 per cent to hit a low of Rs 98 on BSE.

Revenue from operations fell to Rs 11,458.32 crore in the December quarter from Rs 11,965.01 crore a year ago.

CPCL owns and operates 10.5 million tonnes a year of oil refining capacity near Chennai. It converts crude oil into fuels such as petrol and diesel.

"The demand for fuel products was lower during the first half-year due to COVID related lockdown, resulting in lower crude throughput (refinery run). The capacity utilisation gradually improved during the current quarter (October-December)," the firm said in notes to the accounts.