PETRONET LNG has revealed its quarterly financial performance. Amidst this, the company has declared a dividend payout of ₹7 per share. Following the announcement, the share price plummeted by 7%, settling below ₹208.
In an ambitious move, PETRONET LNG has voiced its intentions to establish a petrochemical plant in Dahej, Gujarat, at a cost of ₹20,685 crores. Industry experts, however, view this investment with skepticism. The reason? The current investment needed for a similar operation is close to ₹13,000 crores.
Historically, only major players like RIL have found success in the PETCHEM sector. For a PSU, the petrochemical business isn’t seen as a high-return venture. For instance, GAIL reported losses in its PETCHEM operations in the previous quarter, which might be a reason for the significant drop in PETRONET’s share price.
Diving deeper into the Q2 results, PETRONET LNG reported an increase in profits from ₹819 crores in the April-June quarter of the fiscal year 2023-24 to ₹856 crores in the July-September period.
The company’s revenue surged from ₹11,656 crores to ₹12,533 crores. Operational profit or EBITDA also saw a rise, moving from ₹1,182 crores to ₹1,216 crores. However, the margin slipped from 10.1% to 9.7%.
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