MRPL reports buoyant results; Stock up 1.6% despite paring most of its early gains

Last Updated: Thu, May 18, 2017 15:19 hrs
People walk pass the Bombay Stock Exchange building in Mumbai

Mangalore Refineries and Petrochemicals is trading firm, despite paring a significant portion of its early gains.

The Stock zoomed to Rs 142.75 in early trades today, riding on strong quarterly results. However, due to profit taking, the stock pared most of its early gains and is currently at Rs 137.50, up 1.6% from is previous close.

The stock has moved up on impressive volumes today, with the counter at BSE registering a volume of 12.63 lakh shares so far in the session, around 3.5 times the average daily volume of 3.66 lakh shares.

On the National Stock Exchange, the counter has clocked a volume of narly 9.6 lakh shares so far in the session.

From around Rs 63 in late June 2016, Mangalore Refinery and Petrochemicals shares have come a long way up north, gaining about 125% in eleven months.

The company announced on Wednesday that it posted a net profit of Rs 1942 crore in the fourth quarter ended March 2017, the highest quarterly profit ever In the corresponding quarter last year, MRPL had posted a net profit of Rs 1362 crore. Net profit for the full year ended March 2017, at Rs 3644 crore, was also the company's highest ever annual profit.

MRPL's turnover was up more than 34% at Rs 18,100 crore in the January - March 2017 quarter, from Rs 13,477 crore in the year-ago quarter.

Reversal of foreign exchange provision and higher refinery efficiency contributed to the jump in earnings in the fourth quarter of fiscal 2016-17, the company said.

During the quarter, MRPL reversed Rs 1597 crore it had provisioned to pay Iran for past oil dues. This was possible because MRPL could pay for the dues at the exchange rate prevalent at the time of billing and not at the current level.

MRPL cleared about US $2.5 billion of dues in 2016- 17 after sanctions on Iran were lifted. The company earned US $8.25 on turning every barrel of crude oil in the fourth quarter of 2016-17 as compared to a gross refinery margin of US $8.24 a barrel a year ago.

In the fourth quarter of 2016-17, MRPL  processed 4.23 million tonnes of crude oil, down from 4.52 MT last year. The drop in quantum was due to planned shutdown of some units, the company said.

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