Stock Crash: Chennai Petro shares tank 10% after Q1 loss; earnings before tax nearly wiped out

Shares of Chennai Petro Ltd. fell as much 10% on Friday, July 25, after reporting a net loss for the June quarter, in comparison to a net profit that it reported during the March quarter

Chennai Petro reported a net loss of ₹80 crore, compared to a net profit of ₹469 crore in the March quarter.

Its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA), decline by 87% from last year to just ₹99 crore from ₹784 crore in March.
EBITDA margin for the quarter narrowed to just 0.6% from 4.5% in the previous quarter.

Gross Refining Margin (GRM) for the quarter fell to $3.22 per barrel from $6.33 that it had reported in the year-ago quarter.

Interestingly, the weakness has come in both standalone refiners (MRPL being the other one), despite the Singapore GRMs rising on a sequential basis, as well as from last year.

The weakness in the results of Chennai Petro is due to the inventory losses reported by the company, while MRPL’s weakness was due to maintenance shutdowns undertaken by the company.

Shares of Chennai Petro are trading 9.3% lower at ₹692.