Gandhar Oil Refinery shares plunge over 9% amid sharp Q4 net profit decline

Shares of Gandhar Oil Refinery (India) Ltd plunged more than 9% to an intraday low of ₹205.1 apiece on the NSE on Thursday, May 23, following a sharp drop in net profit in the March quarter.

The company announced its financial results for the fourth quarter and the full financial year 2023-24 ended March 31, 2024, on Wednesday.

The leading manufacturer of white oils reported a nearly 5% drop year-on-year in consolidated revenue from operations for the fourth quarter of FY24 at ₹939.24 crore compared to ₹986.68 crore in Q4FY23. The company’s revenue from operations fell nearly 15% in the March quarter from ₹1,102.61 crore in Q3FY24, on a quarter-on-quarter basis.

The company’s net profit for the March quarter fell 57% to ₹12.11 crore against ₹28.38 crore in the year-ago period. The net profit March quarter fell more than 76% compared to ₹50.91 crore in the December quarter.

In FY24, the company’s revenue from operations grew nearly 1% to ₹4,113.21 crore compared to ₹4,079 crore in FY23. The company’s net profit fell nearly 23% to ₹165.31 crore for the entire financial year 2023-24 compared to ₹213.93 crore in the preceding fiscal.

The oil refinery company has recommended a final dividend of ₹0.5 per share for the financial year 2023-24. The dividend payout is subject to approval by the shareholders at the upcoming Annual General Meeting (AGM) of the company.

Gandhar Oil shares trade below listing price

The oil refinery stock made its D-street debut on November 30, 2023, with a premium of over 76%. The shares were listed at ₹298 apiece on the NSE compared to the issue price of ₹169 per share.

Shares of Gandhar Oil Refinery have plunged nearly 30% from its listing price. The stock hit its 52 week high soon after listing and traded at ₹344.05 apiece on the NSE.

The stock was trading 8.69% lower at ₹206.50 apiece on the NSE at 3:20 pm.