New Delhi: Chennai Petroleum Corp Ltd (CPCL), a subsidiary of Indian Oil Corp, reported a six-fold jump in net profit in the fourth quarter ended March 2007, mainly due to increase in price of products it sold.
The company posted a net profit of Rs189 crore for the fourth quarter ended 31 March, against Rs29.26 crore for the same quarter last year.
Net sales increased marginally by 3% to Rs5,725 crore, against Rs5,508 crore in January-March 2006. The rise in profit is mainly due to a 1% fall in total expenditure, excluding interest and depreciation, to Rs5,323 crore, and better selling prices, company officials said.
The Chennai-based oil refinery reported 18% growth in net profit to Rs565 crore for the year ended March 2007, against Rs481 earned in the previous twelve months ended March 2006.
Net sales rose 17% to Rs24,695 crore, from Rs21,129 crore earned in April- March 2006. Only 3% of increase in turnover came for increased production, while the rest came from price increase during the year, said K K Acharya, managing director of CPCL.
The gross refinery margin, the difference between the prices of products sold by the refinery and the price of the input- crude oil, was $5 per barrel.
On the outlook for the current year, N C Sridharan, director (finance) of CPCL said due to extreme volatility of international crude prices it was not possible to predict profitability.
However, he added that the company’s aim was to maintain the three-year average net profit of Rs650 crore and gross refinery margin of $5.