Tamilnadu PetroProducts Limited has informed the Exchange about General Updates
TNPETRO · price
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The Board of Tamilnadu PetroProducts has approved a revision in the estimated cost of its ongoing LAB plant expansion from ₹310 Crore to ₹365 Crore, and its HCD plant expansion from ₹214 Crore to ₹237 Crore. The cost increase is attributed to foreign exchange fluctuations and other factors over time. Additionally, the Board approved setting up two new downstream units within the HCD plant at an estimated cost of ₹90 Crore, expected to be completed within 18 months of receiving regulatory approvals. Funding will be sourced from internal accruals and borrowings depending on business conditions at the time of implementation.
Shareholders should note a meaningful upward revision in capital expenditure of about ₹78 Crore for existing projects plus a fresh ₹90 Crore commitment, which could increase debt and pressure margins in the short term. However, the downstream units could enhance future revenue and product value-addition once operational.