ADVERTISEMENT

MRPL Q1 Review - Abysmal Margins, Operational Performance Continue: Motilal Oswal

MRPL Q1 Review - Abysmal Margins, Operational Performance Continue: Motilal Oswal

<div class="paragraphs"><p>Mangalore Refinery and Petrochem Ltd.’s oil refinery. (Source: Company website).</p></div>
Mangalore Refinery and Petrochem Ltd.’s oil refinery. (Source: Company website).

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Mangalore Refinery and Petrochemicals Ltd. reported lower-than-estimated Ebitda.

Refining throughput was down 24% QoQ (~82% utilisation rate) on account of slower demand (impacted by the second Covid-19 wave).

As per our discussion with the management, the utilisation rate at the refinery and polypropylene unit continues to hover at 82–85% currently.

Continued concerns over utilisation rates would keep margins under pressure (due to higher opex), impacting profitability.

In its board meeting, MRPL announced the following resolutions:

  • raising funds of up to Rs 50 billion through the issue of non-convertible debentures,

  • Increasing the borrowing limit from Rs 250 billion to Rs 335 billion.

Click on the attachment to read the full report:

Motilal Oswal MRPL Q1FY22 Result Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.