Petronet LNG Q3 Results: Profit Rises 2.1%, But Misses Estimates
Petronet LNG Ltd. reported a 2.1% quarter-on-quarter (QoQ) increase in consolidated net profit to Rs 867 crore for the third quarter of fiscal year 2025. However, this figure narrowly missed the estimate. The company had posted a net profit of Rs 849 crore in the previous quarter.
Key Financial Highlights (Consolidated, QoQ)
- Revenue from Operations: Declined by 6.1% to Rs 12,227 crore, missing the estimate of Rs 13,191 crore.
- EBITDA: Increased by 3.7% to Rs 1,247 crore from Rs 1,202 crore.
- EBITDA Margin: Expanded to 10.2% from 9.2%.
- Net Profit: Rose by 2.1% to Rs 867 crore from Rs 849 crore.
Operational Performance
Despite the marginal growth in net profit, Petronet LNG faced challenges on the revenue front, with a 6.1% decline in revenue from operations. However, the company managed to improve its operating efficiency, as reflected in the 3.7% rise in EBITDA and the expansion of its EBITDA margin to 10.2%.
Strategic Agreement with Deepak Phenolics
Petronet LNG announced a significant agreement with Deepak Phenolics for the sale and purchase of 250 KTA propylene and 11 KTA hydrogen. The supplies will be sourced from Petronet’s petrochemical complex at Dahej and will continue for 15 years from the date of the first supply. The company clarified that this contract does not fall under party-related transactions.
Stock Performance
Shares of Petronet LNG experienced volatility during the trading session, falling as much as 0.62% to Rs 320.70 before closing 3.69% lower at Rs 310.80 per share on the National Stock Exchange (NSE). Despite the decline, the stock has gained 18.20% on a year-to-date basis.
Analyst Ratings
According to data, 10 out of 36 analysts tracking the company have a 'buy' rating on the stock, while 12 suggest 'hold' and 14 recommend 'sell'. The average 12-month price target implies a potential upside of 11.6%.
Outlook
While Petronet LNG’s Q3 performance fell short of estimates, the company’s strategic agreements and improved operational efficiency indicate a focus on long-term growth. Investors will closely monitor its ability to sustain margin improvements and capitalize on new business opportunities.
Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.
0 comments:
Post a Comment