Chennai Petroleum Corporation Stock Soars on Strong Q4 Results and Dividend Hike
Chennai Petroleum Corporation (CPCL) witnessed a significant surge in its stock price on Wednesday, April 24, 2024, reaching a new high of Rs 1,081.65 per share on the BSE. This impressive performance was driven by the company's robust January-March quarter results (Q4FY24) and a substantial increase in dividend payout.
The energy firm reported a remarkable 71% quarter-on-quarter (Q-o-Q) jump in consolidated net profit to Rs 627.89 crore, compared to Rs 365.3 crore in the previous quarter. While the profit was lower year-on-year compared to Rs 1,012.8 crore, the strong Q4 performance boosted investor confidence.
Revenue from operations also witnessed a positive trend, reaching Rs 20,822.95 crore compared to Rs 20,453.94 crore in Q3FY24 and Rs 21,350.05 crore in Q4FY23. Earnings Before Interest, Tax, Depreciation and Amortisation (Ebitda) grew by 53.2% Q-o-Q to Rs 1,042 crore, with margins expanding to 5.88% from 3.91% in the December quarter.
Further fueling investor enthusiasm was the announcement of a final dividend of Rs 55 per share for FY24. This represents a 30% payout of the company's full-year net profit of Rs 2,711 crore, double the payout of Rs 27 per share announced last year.
Chennai Petroleum Corporation is a subsidiary of Indian Oil Corporation and is recognized as a leading producer of fuels and lubes base stock. The company's refinery has grown from an initial capacity of 2.5 million metric tonnes per annum (MMTPA) to its current capacity of 10.5 MMTPA.
CPCL's stock has outperformed the market in the current calendar year, with a near 4% rise compared to the benchmark S&P BSE Sensex index's 2% gain. This impressive performance reflects the company's strong financial performance and commitment to shareholder value.