Continental Petroleums Limited, a player in the lubricants and grease manufacturing sector, has reported a significant drop in its quarterly profit and announced the appointment of a new cost auditor for the upcoming fiscal year.

Financial Performance

The company's unaudited financial results for the quarter ended June 30 reveal a substantial decline in profitability:

Continental Petroleums experienced a sharp 52.15% year-over-year decrease in net profit, which fell to ₹61.70 lakhs from ₹128.94 lakhs in the same quarter of the previous year. This decline was accompanied by a 48.67% reduction in total income, which decreased to ₹1843.58 lakhs from ₹3591.51 lakhs.

The earnings per share (EPS) also reflected this downward trend, dropping to ₹1.11 from ₹2.32 in the corresponding quarter of the previous year, marking a 52.16% decrease.

Appointment of Cost Auditor

In a separate development, Continental Petroleums' Board of Directors has approved the appointment of Mr. Babu Lal Maharwal as the company's Cost Auditor for the fiscal year 2025-26. Mr. Maharwal is the proprietor of M/s MAHARWAL & ASSOCIATES, a firm registered with the Institute of Cost Accountants of India (Firm Registration No. 101556).

The appointment was made during a board meeting held on August 11. M/s MAHARWAL & ASSOCIATES, established in 2012, specializes in various compliance and consulting services, including cost audit, cost compliance, internal controls, taxation, and management consultancy.

Company Overview

Continental Petroleums Limited operates in three main business segments:

1. Lubricants & Grease Manufacturing & Distribution
2. Incineration Services
3. Turnkey Projects

The company continues to navigate challenging market conditions, as reflected in its latest financial results.

Note: All financial figures are in Indian Rupees (₹).

Continental Petroleums Ltd has announced a strategic move to expand its portfolio by acquiring a stake in Unique Tech Associates Pvt. Ltd. The company plans to purchase 24,999 shares of Unique Tech Associates for a total consideration of ₹71.5 crore.

Acquisition Details

This acquisition represents a significant investment for Continental Petroleums, potentially aimed at diversifying its business interests or strengthening its position in the market.

Strategic Implications

While the specific reasons for the acquisition have not been disclosed, such moves are often undertaken to:

• Expand into new market segments
• Acquire complementary technologies or expertise
• Enhance the company's competitive position
• Create potential synergies between the two entities

Market Impact

Investors and market analysts will likely be watching closely to see how this acquisition affects Continental Petroleums' financial performance and strategic direction in the coming quarters.

The company has not provided details on how it plans to finance the acquisition or the expected impact on its financial statements. Shareholders may anticipate further disclosures on these aspects in future announcements or financial reports.

As the deal progresses, more information may become available regarding the strategic fit of Unique Tech Associates within Continental Petroleums' business model and the potential benefits this acquisition might bring to the company's overall growth strategy.