Tamilnadu Petroproducts Ltd.‘s (TPL) standalone net profit for the second quarter ended September declined 40% to ₹27 crore due to a spike in input and energy costs.
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Revenue from operations increased 31% to ₹602 crore, the Chennai-based firm which is a part of AM International Group, Singapore, said in a regulatory filing.
Raw material costs soared 73% to ₹370 crore, while interest cost rose 69% to ₹1.81 crore, and energy costs by 50% to ₹120 crore.
“To counter the increasing cost of production, we are streamlining strategies to reduce operational costs across the enterprise,” said Muthukrishnan Ravi, CEO, Petrochemicals Division of AM International Group.
“Our efforts will be fortified by our disciplined focus on capital allocation and cash flow generation. I am confident that these will improve our margins in the coming quarters,” he added.