Chennai Petro reported revenue of INR 1,13,333 mln, up 8.0% QoQ and 6.7% YoY because of higher crude prices. Crude throughput was up by 3.8% QoQ and 5.6% YoY to 2.74 MMT. Cost of material consumed was up 23% QoQ and 24% YoY to INR 77,208 mln. EBITDA stood at INR 8,336 mln up both on a quarterly and yearly basis primarily due to high inventory gains and lower other expenditure. Which stood at INR 1,789 mln as compared to INR 2,038 mln in Q2FY18. Net Profit was up on a quarterly and yearly basis at INR 3,862 mln aided by higher income in addition to higher throughput and GRM. Inventory gains were reported at INR 3,912 mln as compared to inventory losses of INR 1,595 mln in Q2FY18 and INR 1,849 mln in Q3FY17. GRM stood at $8.58/bbl as compared to $7.53/bbl in Q2FY18 and $6.25/bbl in Q3FY17. Other income increased significantly to INR 739 mn up 76% YoY and 42% QoQ while the tax expense for the...

Chennai petroleum has reported better than expected performance. CPCL's Q2FY18 PAT increased significantly by 846% qoq (partly base effect) to Rs.3.2 bn (+221% yoy) reflecting significantly higher refining margins, higher sales volume and lower raw material cost. CPCL has reported higher throughput of 2.64 mmt (2% qoq), resulting in 87% capacity utilization in Q2FY18. The company has reported higher GRMs of US$5.67/bbls in H1FY18 v/s US$ 3.81/bbls in Q1FY18. We expect CPCL to report an EPS of Rs.58.7/share in FY18E and an EPS of Rs.74.5 in FY19E supported by higher refining margins, lower operating cost, higher other...

BUY Chennai Petroleum Corporation Ltd at CMP Rs. 275.6 and add on dips Rs. 237-248