Confidence Petroleum India Limited (CPIL) has released its financial results for the first quarter, revealing a mixed performance with revenue growth accompanied by profitability challenges.

Revenue Growth

CPIL reported a consolidated revenue from operations of ₹1,11,199.00 lakh for Q1, marking a significant increase from ₹77,793.00 lakh in the same quarter of the previous year. This represents a year-over-year growth of approximately 43%, indicating strong top-line performance.

Profitability Metrics

Despite the robust revenue growth, the company faced some headwinds in profitability:

• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) decreased to ₹828.00 crore from ₹905.00 crore in the previous quarter.
• EBITDA margin compressed to 7.45% from 9.79% quarter-over-quarter.
• Consolidated net profit declined to ₹202.00 crore from ₹228.00 crore in the previous quarter.

Segment Performance

CPIL operates in two main segments:

1. Cylinder Division:

   • Revenue: ₹4,419.00 lakh
   • Segment Result: ₹354.00 lakh

2. LPG Division:

   • Revenue: ₹1,06,780.00 lakh
   • Segment Result: ₹7,927.00 lakh

The LPG Division continues to be the primary revenue driver for the company.

Financial Highlights

Strategic Developments

The company has made some strategic decisions:

1. CPIL has decided to discontinue its involvement in the planned LPG import terminal project at JNPA (Jawaharlal Nehru Port Authority).
2. The company will explore the development of smaller, more efficient terminal facilities.
3. CPIL remains committed to strengthening its presence in the domestic energy market through investments in high-growth retail verticals, bulk LPG supply to various industries, and small terminals in different geographical areas.

New Subsidiary

CPIL incorporated a wholly-owned subsidiary named Confidence Green Energy Private Limited, signaling potential expansion into green energy solutions.

Auditor's Observations

The company's auditors have noted two areas of concern:

1. A difference in the value of Input Tax Credit as per the company's books and the GST Network Portal.
2. Non-recognition of additional provident fund liability on revised basic wages, as per a Supreme Court ruling.

The management is working on reconciling these issues and seeking expert opinions where necessary.

In conclusion, while Confidence Petroleum India Limited has shown strong revenue growth, the company faces challenges in maintaining profitability margins. The strategic shift away from the large LPG import terminal project towards smaller, efficient facilities and the formation of a new green energy subsidiary indicate the company's efforts to adapt to market conditions and explore new growth opportunities in the energy sector.

Confidence Petroleum India Limited (CPIL) has taken a significant step towards expanding its operations in the Liquefied Petroleum Gas (LPG) and Compressed Natural Gas (CNG) sectors with the establishment of a new wholly-owned subsidiary, Confidence Green Energy Private Limited (CGEPL).

New Subsidiary Details

The company announced the incorporation of CGEPL following the issuance of the Certificate of Incorporation by the Ministry of Corporate Affairs, Government of India. This strategic move is aimed at strengthening Confidence Petroleum's position in the green energy market, particularly in LPG and CNG-related activities.

Financial Structure

CGEPL has been incorporated with an authorized share capital of ₹5,00,000, divided into 50,000 equity shares of ₹10 each. The subscribed and paid-up capital of the new entity will be ₹1,00,000, consisting of 10,000 equity shares of ₹10 each, entirely held by Confidence Petroleum India Limited.

Business Focus

The new subsidiary is set to play a crucial role in developing Confidence Group's LPG and CNG business. CGEPL's primary focus will be on:

1. Providing LPG and CNG filling stations
2. Engaging in other LPG and CNG-related activities

This expansion aligns with the growing demand for cleaner energy solutions and reinforces Confidence Petroleum's commitment to the green energy sector.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Confidence Petroleum has duly informed the National Stock Exchange of India Limited and the Bombay Stock Exchange about this development.

Industry Impact

The establishment of CGEPL represents a strategic move by Confidence Petroleum to capitalize on the growing importance of LPG and CNG in India's energy landscape. As the country continues to prioritize cleaner fuel alternatives, this expansion could position the company to capture a larger market share in the evolving energy sector.

The incorporation of Confidence Green Energy Private Limited marks a significant milestone for Confidence Petroleum India Limited, potentially opening new avenues for growth and reinforcing its commitment to sustainable energy solutions.