Shares of Chennai Petrochemicals surged to near 4 year highs. Know why

Shares of Chennai Petrochemicals Shares of Chennai Petrochemicals Ltd., a midsized refiner, surged to near 4-year highs after the company stunned the markets with a fantastic set of numbers thanks to falling prices of crude oil, its main raw material.

Chennai Petro said its first quarter profit surged 153 percent to 923.5 crore rupees compared with 364.6 crore rupees in the sequential quarter 3 months ago. Sales rose 2.5 percent to 9,054 crore rupees during April-June compared with 8,824 crore rupees in January-March. The company reported a 119 percent rise in its Operating profit to 1,061 crore rupees.

Chennai Petro said its refining margin surged to $10.09 per barrel versus $5.85 per barrel sequentially.

Chennai Petro rose 24 rupees, or 13.5 percent, to 203.65 rupees, its highest since Oct 2011 on the National Stock Exchange, where 254 crore rupees worth of shares were transacted by 2:30 pm compared with Friday's tally of 44 crore rupees.

Chennai Petro's market capitalisation has jumped 125 percent to 3,000 crore rupees over one year.

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