Chennai Petro Q1 net declines 57%
Mumbai   28-Jul-2009
<b>Net Sales Slip 50% to Rs 5,660 crore during the quarter</b> Chennai Petroleum Corporation (CPCL), a group company of IndianOil, has reported a net profit of Rs 304.7 crore in the first quarter ended June 30, 2009 down by 56.7%, against Rs 703.2 crore during the same period last year. Net sales also dropped 49.7% to Rs 5,660.3 crore (Rs 11,253.2 crore). The gross refining margin (GRM) for the quarter was over $6,88 per barrel compared with $15.89 per barrel during the corresponding quarter of the previous year. "We had a bad financial year last year because of inventory losses. But now the prices are stable. The margins are stable although the current outlook is a bit lower than that, but we think we have really turned the corner as far as CPCL is concerned," IndianOil Chairman and Managing Director & CPCL Chairman Mr. Sarthak Behuria told ET NOW. On the outlook for CPCL, Mr. Behuria said "This year is also going to be a tough year because we will have shutdowns because some new projects are getting commissioned. We have to do Euro III, Euro IV, MS quality up gradation, so we have (o take some shutdowns in October-November. But overall it’s going to be a good year for CPCL." Though Mr. Behuria did not comment specifically on the IndianOil results, expected later this week, he said: "The prices arc stable, under recoveries are lower, so its a good time (or oil marketing companies than it has been in the past." CPCL shares on BSE were up 0.06% on Monday at Rs 176.2, against previous close of Rs 176.1.