MRPL spurts after turnaround Q4 numbers

Mangalore Refinery & Petrochemicals (MRPL) jumped 7.61% to Rs 52.35 after the company posted a net profit of Rs 328.30 crore in Q4 FY21 compared with net loss of Rs 1,629.14 crore in Q4 FY20.

Net sales declined 3.94% year-on-year to Rs 13,575.94 crore in Q4 FY21 as against Rs 14,132.28 crore in Q4 FY20. The company reported pre-tax profit of Rs 519 crore in Q4 FY21 as against a pre-tax loss of Rs 2276 crore in Q4 FY20. EBITDA stood at Rs 874 crore in Q4 FY21 as against EBITDA loss of Rs 1,891 crore in Q4 FY20.

The company said its average gross refining margin (GRM) stood at $6.50/bbl for Q4 FY21 as against negative GRM of $4.52/bbl in Q4 FY20. Throughout (crude+others) increased by 5.22% to 4.03 MMT in Q4 FY21 over Q4 FY20. The company's exports grew by 25.7% year on year to Rs 3,903 crore in Q4 FY21.

MRPL said it took several initiatives to improve the revenue available from marketing margins. The company added that domestic sales of petroleum products were increased by entering into new agreements with oil marketing companies. To capture retail margins, MRPL is focused on setting up its own retail outlets and the same is being expedited.

The company posted a standalone loss of Rs 240 crore for the year ended March 2021 (F21) as against net loss of Rs 2,740 crore for the year ended March 2020 (FY20). Gross revenue declined 16% year on year to Rs 51,019 crore in FY21 over FY20.

The outbreak of COVID-19 pandemic globally and resultant lockdown in many countries has impacted the business of the company. Consequently, lower demand for crude oil, petroleum and petrochemical products has impacted the prices and refining margin globally during the part of the year which has resulted in reduction in sales for the company. The capacity utilisation gradually improved subsequently. Management has assessed the potential impact of COVID 19 based on the current circumstances and expects no significant impact on the continuity of operations of the business on long term basis/ on useful life of the assets/ on long term financial position etc. though there may be lower revenues and refinery throughput in the near future.

MRPL is a subsidiary of ONGC and schedule 'A' Miniratna, Central Public Sector Enterprise (CPSE) under the Ministry of Petroleum & Natural Gas.

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