Mangalore Refinery and Petrochemicals Ltd today reported its highest quarterly profit in the three month period ended March 31 after it reversed a foreign exchange provision.
"The profit was higher on two accounts - one because of higher refinery efficiency and two, reversal of foreign exchange provision," he said.
It happened because MRPL could pay for the dues at the exchange rate prevalent at the time of billing and not at the current level. The dues accumulated for past few years due to banking channels not being available to transmit money to Iran, facing sanctions from the West.
As much as USD 2.5 billion of dues were cleared in 2016- 17 after sanctions on Iran were lifted.
Lower processing was due to planned shutdown of some units, he said.
Turnover was however up at Rs 18,100 crore, from Rs 13,477 crore.
Sarraf said net profit in full 2016-17 fiscal at Rs 3,644 crore too was highest ever annual profit.
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