MRPL Q1 profit plummets 93%, revenue up 10.4%

23 Jul 2024 , 02:15 PM

Mangalore Refinery and Petrochemicals Ltd (MRPL) announced a dramatic 92.8% decrease in net profit for the first quarter ending June 30, 2024. The net profit stood at ₹73.2 Crore, down from ₹1,014.8 Crore in the same quarter the previous year.

At the time of writing on July 23, 2024 at 2:10 pm shares of Mangalore Refinery and Petrochemicals Ltd (MRPL) is currently trading at ₹205 which is a 4.27% dip than the previous close. Mangalore Refinery and Petrochemicals Ltd (MRPL) stock has gained a total of 135% in the last one year, and witnessed a 54% gain since the beginning of the year.

The company’s revenue from operations rose by 10.4%, reaching ₹23,247 Crore compared to ₹21,057.6 Crore in the corresponding period of the last fiscal year.

At the operating level, MRPL’s EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) plummeted 70.7% to ₹605.6 Crore in Q1 FY 2024-25, down from ₹2,068.3 Crore in Q1 FY 2023-24.

The EBITDA margin for the reporting quarter was 2.6%, a significant decrease from 9.8% in the same period the previous year. MRPL’s Gross Refining Margin (GRM) fell to $4.70 per barrel, compared to $9.81 per barrel in Q1 FY 2023-24. The company’s debt-equity ratio improved from 0.94 as of March 31, 2024, to 0.89 as of June 30, 2024.

In May 2024, MRPL achieved record-high crude processing volumes, processing 1,593.2 TMT, surpassing the previous high of 1,557.3 TMT set in January 2016. Additionally, the highest-ever aviation turbine fuel (ATF) dispatch was recorded at 230.416 TMT, exceeding the previous high of 227.515 TMT in February 2024.

In June 2024, MRPL processed VARANDEY crude from Russia (API—37.63) and EOCENE crude from the Saudi-Kuwait Neutral Zone (API—18.07) for the first time. KALININGRAD crude from Russia (API—39.43) was processed for the first time in April 2024.

June 2024 also set a record for the highest amount of crude processed in a single month at 1,474.34 TMT, surpassing the previous record of 1,463.3 TMT set in June 2015.

MRPL appointed Yogish Nayak S as Chief Financial Officer effective July 22, 2024. Nayak, a chartered accountant with nearly 29 years of corporate finance experience, began his career at MRPL in September 1995. He has extensive expertise in corporate accounts, costing and budgeting, treasury and investments, taxation, capital investments, and marketing finance.