C P C L Reports Negative Performance in Q2 FY25, Concerns Over Sales and Profitability

Chennai Petroleum Corporation (C P C L), a midcap company in the oil exploration and refineries industry, has recently announced its financial results for the quarter ending September 2024. The stock has been given a ‘Hold’ call by MarketsMOJO.

According to the financials, C P C L has seen a negative performance in the quarter, with a score of -17 compared to -11 in the previous quarter. However, there are some positive aspects to the company’s performance. The Dividend Payout Ratio (DPR) has been consistently high at 29.84% in the last five years, indicating that the company is distributing a higher proportion of its profits as dividends.

On the other hand, there are some areas of concern for C P C L. The net sales for the quarter have fallen by 29.7% compared to the average net sales of the previous four quarters. This indicates a negative trend in the company’s sales in the near term. Similarly, the Profit Before Tax less Other Income (PBT) has also fallen by 201.6% compared to the average PBT of the previous four quarters, indicating a negative trend in the company’s profitability.

Other key financial indicators, such as Profit After Tax (PAT), Operating Profit (PBDIT), Operating Profit Margin, and Earnings per Share (EPS) have also shown a decline in the quarter. The company’s efficiency has deteriorated, with the lowest operating profit margin in the last five quarters. The PBT and EPS have also hit their lowest levels in the last five quarters, indicating a decline in profitability and earnings for shareholders.

It is worth noting that the company’s non-operating income has increased in the quarter, but this may not be sustainable in the long term. Overall, the financial results for the quarter ending September 2024 show a negative trend for C P C L, with some areas of concern that need to be addressed.