Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Can MRPL pull it off… - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Jul 29, 2000

    Can MRPL pull it off…

    The company has reported a significant growth in turnover. However, its operating profit is inclusive of other income and therefore does not show a true picture. MRPL has been able to reduce its net loss largely on the ground of reduced interest outgo.

    (Rs m) 1QFY00 1QFY01 Change
    Sales 6,010 8,843 47.1%
    Expenditure 5,853 8,520 45.6%
    Operating Profit (EBDIT)** 157 323 105.3%
    Operating Profit Margin (%) 2.6% 3.6%  
    Interest 1,027 816 -20.6%
    Depreciation 352 375 6.4%
    Profit before Tax (1,223) (868) -29.0%
    Tax - -  
    Profit after Tax/(Loss) (1,223) (868) -29.0%
    Net profit margin (%) -20.3% -9.8%  
    No. of Shares (eoy) 795 795  
    Diluted Earnings per share* -6.2 -4.4  
    **(inclusive of other income)      

    MRPL's woes are due to the increase in crude oil prices, which has resulted in reduced refining margins. Further, as per the deregulation schedule, net tariff protection for refineries was supposed to be 15% by FY01. This has not materialised and to that extent it has impacted refining companies.

    The difficulties of MRPL are industry specific and should effect all other refineries. For FY00 all refineries reported a decline in operating margins and to that extent MRPL is not a blck sheep. However, MRPL is in greater financial difficulty at the PAT level due to the large fixed costs it has to incur for having a relatively new plant.

    To become more competitive MRPL has increased its capacity from 3 m tonnes to 9 m tonnes. The new capacity should go onstream by 2HFY01. This capacity is to be augmented to 12 m tonnes through de-bottlenecking and as per latest reports MRPL plans to further augment capacity to 18 m tonnes.

    MRPL roped in Andersen Consulting to chalk out a marketing plan for the post deregulation era. It has been advised to set up an independent marketing channel. For this initiative it has already applied for marketing rights of controlled products.

    The company is in search of a strategic equity partner and has held talks with Kuwait Petroleum and TotalFina. Currently, it is holding discussions with AbuDhabi National Oil Company (Adnoc). The strategic sale is required for infusing funds to meet its capacity expansion and marketing foray. The sale of equity will also enable MRPL to leverage on the marketing expertise of its new partner.



    Equitymaster requests your view! Post a comment on "Can MRPL pull it off…". Click here!


    More Views on News

    GAIL: A Good Show (Quarterly Results Update - Detailed)

    Mar 27, 2017

    GAIL (India) Ltd has announced results for the quarter ended December 2016. reported 9.4% year on year (YoY) decline in sales, while bottom-line grew 45.4% YoY.

    ONGC: Higher Realisations on Crude Support Performance (Quarterly Results Update - Detailed)

    Mar 17, 2017

    ONGC has announced results for the quarter ended December 2016. The company has reported 9.2 % year on year (YoY) growth in sales, while bottom-line grew 197% YoY.

    Oil India Ltd: A weak quarter (Quarterly Results Update - Detailed)

    Jan 24, 2017

    Oil India Limited announced results for the quarter ended September 2016. The company has reported an 6.5% and 7.8% Year on Year (YoY) decline in sales and net profit respectively during the quarter.

    GAIL: A Robust Quarter (Quarterly Results Update - Detailed)

    Dec 3, 2016

    GAIL (India) Ltd has announced results for the quarter ended September 2016. The company has reported 16 % year on year (YoY) decline in sales, while bottom-line grew 180% YoY.

    ONGC: Lower Write-offs Support Performance (Quarterly Results Update - Detailed)

    Nov 3, 2016

    ONGC has announced results for the quarter ended September 2016. The company has reported 10.3 % year on year (YoY) decline in sales, while bottom-line grew 6.3% YoY.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    Proxy Plays: A Smart Way to Bet on 'Off Limits' Companies(The 5 Minute Wrapup)

    Aug 4, 2017

    The small-cap space is full of small players that are clear proxies to great growth stories and Indian megatrends.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms


    Aug 16, 2017 (Close)