Confidence Petroleum India Limited — Results, 29-05-2025: Integrated Filing- Financial

Confidence Petroleum India Ltd has announced a board meeting on 29th May 2025 to approve the financial results for the quarter and half-year ended March 31, 2025, along with a final dividend of 10% subject to shareholder approval.

Revenue Performance: Consolidated total revenue reached Rs. 3,145.76 Cr for the year, marking a 16.6% YoY increase from Rs. 2,698.47 Cr. This growth was primarily driven by the LPG division, which contributed Rs. 2,782.31 Cr, while the Cylinder division added Rs. 363.45 Cr.

Profitability and EPS: Net profit after tax declined to Rs. 90.84 Cr from Rs. 105.28 Cr last year, with EPS dropping to Rs. 2.62 from Rs. 3.50. Margin pressure came from higher depreciation and finance costs, offsetting revenue gains.

Operational Costs: Total expenses rose sharply to Rs. 3,074.84 Cr from Rs. 2,573.22 Cr, led by increased purchase of stock-in-trade reflecting scaling operations. Employee expenses increased moderately, and depreciation rose to Rs. 174.78 Cr, indicating continued asset investments.

Key Metrics: LPG segment profits dropped to Rs. 222.83 Cr from about Rs. 349.25 Cr, affected by cost inflation, while Cylinder division profit was Rs. 10.43 Cr. Finance costs went up to Rs. 78.64 Cr due to higher debt servicing.

Balance Sheet / Cash Flow Health: Borrowings rose to Rs. 305.21 Cr, with net debt increasing amid a capex spend of ~Rs. 272 Cr. Cash balance improved to Rs. 147.25 Cr. Operating cash flow reduced drastically to Rs. 9.63 Cr from Rs. 255.7 Cr, impacted by working capital tightening.

Management Commentary / Strategic Outlook: The company is halting a large LPG import terminal project to focus on smaller, more efficient terminals, expanding retail and bulk LPG supply. Capex remains prioritized on Auto LPG, Pack LPG Cylinder, and CNG segments to strengthen market presence.

Final Takeaway: Confidence Petroleum maintains healthy top-line growth driven by LPG marketing, though profitability is under pressure from increasing costs and debt servicing. Investments aimed at expanding capacity and shifting to efficient infrastructure signal long-term growth focus, but investors should monitor margins and cash flow given near-term headwinds. Dividend declaration reflects management’s confidence despite challenges.