Chennai Petroleum Corporation (CPCL), an IndianOil group company, has reported a 11.27% decline in its net profit to Rs 913 crore for FY18 against Rs 1,029 crore in the previous fiscal. The company attributed the lower net profit to the tax incidence of previous year, including the effect of balanced unabsorbed depreciation being availed in full. However, the revenue from operations was higher at Rs 44,188 crore compared to Rs 40,608 crore, a growth of 9%, as a result of increased product sales and prices. The company has earmarked Rs 1,000 crore as capex for the current fiscal.
Speaking to reporters after releasing the annual performance highlights, SN Pandey, MD, CPCL, said the company was currently implementing a number of projects to improve reliability, profitability as well as to meet BS-VI product quality specifications. The total cost of these projects is estimated to be around Rs 2,540 crore. While the new crude oil pipeline project is expected to be completed by July 2018, the BS-VI project is likely to be over during the year 2019-2010. The re-gasified liquified project is scheduled to be completed in phases from November 2018 onwards, he said.
CPCL is also planning to set up a 9 MTPA (million tonnes per annum) refinery at Cauvery basin at Nagapattinam at an estimated cost of Rs 27,450 crore. “In-principal approval has been obtained for this project. The new project will play an important role in meeting the future energy needs in Tamil Nadu. Preparation of the detailed feasibility report is underway and is expected to be completed by March 2019,” he said.