Shares of Chennai Petroleum Corporation Limited (CPCL) hit a 52-week high of Rs 279.55, up 10 per cent on the National Stock Exchange (NSE) in Friday’s intra-day trade, thus surging as much as 16 per cent in the past two trading days on strong March quarter results (Q4FY22).
On Thursday, April 28, 2022, investor Dolly Khanna bought 1 million equity shares representing 0.67 per cent stake of CPCL worth of Rs 26.31 crore through open market purchase on the NSE. Dolly Khanna purchased shares at price of Rs 263.15, the bulk deal data shows. The name of the seller was not ascertained immediately.
Meanwhile, in Q4FY22, the company reported four-fold jump in its consolidated net profit at Rs 1,002 crore as against Rs 242 crore in Q4FY21. Revenue from operations jumped 43 per cent year on year to Rs 20,997 crore from Rs 14,705 crore in previous year quarter.
CPCL operates in downstream petroleum sector. It produces an array of value-added petroleum products.
As per the Indian Energy outlook report by IEA, demand for crude oil in India is expected to increase from 242 MMT in 2019 to 411 MMT by 2040 as the population is expected to increase by 27 crores and also improvement in living conditions. This estimate is taking into consideration the impact of pandemic on petroleum demand in the short term.
The expected demand for more crude oil will provide an opportunity to invest in new refining facilities and requires huge investment in the future. In order to meet the expected growing energy needs in India, especially in the State of Tamilnadu and in other states, CPCL is planning to set up a 9.0 MMTPA refinery at Nagapattinam in Cauvery Basin in Tamilnadu, the company’s FY21 annual report stated.
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