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KRL: OPM still under pressure

Jan 23, 2001

Kochi Refineries Ltd. (KRL) has shown a significant growth in its topline. This could be due to the higher realisations in final product prices as crude oil prices ruled firm during the first two months of the previous quarter.

(Rs m) 3QFY00 3QFY01 Change
Sales 13,692 18,274 33.5%
Other Income 195 224 15.0%
Expenditure 13,055 17,703 35.6%
Operating Profit (EBDIT) 637 572 -10.3%
Operating Profit Margin (%) 4.7% 3.1%  
Interest 107 285 166.0%
Depreciation 190 258 35.7%
Profit before Tax 535 253 -52.7%
Tax 70 21 -70.0%
Profit after Tax/(Loss) 465 232 -50.2%
Net profit margin (%) 3.4% 1.3%  
No. of Shares (eoy) 69 69  
Earnings per share* 27.0 13.4  
P/E Ratio   4.0  

However, the rise in refined product prices has not been as sharp as the rise in crude resulting in lower operating margins for the company. The OPM of the company has dipped by 160 basis points. In 2QFY01 the margins fell by 560 basis points. The pressure on the OPM seems to be easing.

The company recently announced an issue of bonus shares in the ratio of 1:1. The allotment is likely to be made in January 2001.

At Rs 53.9 the company is trading on a multiple of 4x on 3QFY01 annualised earnings.

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