Can you believe that any company’s profit surged at the time when it was shut down? Well, it happened with Nayara Energy, formerly known as Essar Oil Limited, whose profit for Q3 surged by 2% during the maintenance shutdown. As per the stock filing by the company, its net profit remained INR 869.8 crore during this period.
There is no doubt that Nayara Energy is growing at a rapid pace and was able to maintain positive financials despite the temporary shutdown. It can also be seen in Nayara Energy share price, which didn’t fluctuate much during this period. In this blog, we will discuss Nayara Energy’s financials during its maintenance shutdown and its effects on its share price.
Effects of Maintenance Shutdown On Nayara Energy’s Financials
During the third quarter of 2023, Nayara Energy went for maintenance shutdown. It was the month-long maintenance in which the company’s operations negatively impacted its revenue. Nayara Energy’s operational revenue in Q3 FY23 dropped to INR 24,457 crore compared to INR 32,412 crore in the previous year.
The major reason behind it was the no business operations during this period. Nayara Energy, previously known as Essar Oil Limited, completely shut down its Vadinar Refinery in Gujarat. It has a capacity of 400,000 barrels of oil daily and 20 million tonnes annually.
However, the good news for the company is its positive net profit, which surged by 2% during the routine maintenance shutdown. From October to December, the net profit of Nayara Energy remained at INR 869.8 crore, which is higher than the previous year, which was INR 850.3 crore.
If we talk about other financials like EBITDA, PAT, and business expenses, it also decreased during this period. However, various factors behind year-to-date performance impacted Nayara Energy share price. Some of the factors were the imposition of the excise duties and suppressed retail margins.
How Government’s Windfall Profit Tax Impacted Nayara Energy’s Performance?
In July 2022, the Indian Government imposed a windfall profit tax as a special additional excise duty on the export of petrol, diesel, and jet fuel. It affects not only Nayara Energy but also its competitors. However, in the first nine months of the quarter, Nayara Energy reported positive financials. The new retail margins of the company are affected as it sells petrol and diesel at prices capped in April last year.
According to the sources, Nayara followed its strategic direction to supply its own retail outlets, state-owned oil marketing companies, and institutional businesses. The company also recorded significant progress due to its entry into the petrochemical industry while lowering its import dependency. However, Nayara Energy gets back on track and recovers the loss it made during the maintenance shutdown.
Nayara Share Price Movement During Its Maintenance Shutdown
Nayara Energy, which is an unlisted company, is popular among retail investors. Since the company announced month-long routine maintenance of its refinery in advance, it majorly affected Nayara Energy share price. One of the crucial things for you here is to analyse the price movement of Nayara Energy pre-IPO shares at that time. As it is a month-long shutdown, there was no significant impact on the share price of Essar Oil or Nayara Energy. Let’s see Nayara Energy unlisted shares’ price movement from October to December.
In October 2022, the share price of Nayara Energy in the unlisted share market was INR 200 per equity share. It was the time when the company went for a temporary shutdown. However, Nayara Energy Share price touched the 212 price point due to the 2% increase in net profit. From November to December 2022, the share price of Nayara Energy decreased from INR 212 to INR 210 per equity share. As we can see, the shutdown’s effect was not marginal on the company’s share price.
In the last three months, Nayara Energy share price increased from INR 238 to INR 300 per equity share. Currently, the company’s pre-IPO shares are traded at the price of INR 294 per equity share. It shows the company successfully managed its loss during the temporary shutdown of its refinery.
Invest In Nayara Energy Unlisted Shares For Future Benefits
Are you looking for the top-performing unlisted company in the market? Nayara Energy can be your top choice, as this company has grown rapidly in the last five years. It is engaged in the oil refining and its marketing business and covers India’s major cities via its retail distribution outlets. The performance of Nayara Energy in the unlisted share market also remained positive, making it a profitable investment.
You can easily check out Nayara Energy share price, financial reports, and the company’s current performance by using Stockify. It is the best-unlisted share broking platform, allowing retail investors to buy or sell pre-IPO stocks. Expert brokers here will provide you with complete guidance and knowledge of the unlisted shares. Plan your investment in Nayara Energy unlisted shares and get ready to reap the future benefits.