Nov 6, 2000|
KRL: PAT skids on crude surge
The rise in downstream refined product prices has helped Kochi Refineries Ltd. (KRL) post a healthy growth in sales. However, the rise in sales has not been of much avail, as petroleum product prices did not increase as much as crude oil prices.
Petroleum products are sold to the marketing companies at import parity price determined by the Government. Therefore, with international petroleum prices sky rocketing, the Government may not be providing a 100% linkage to import parity.
|Operating Profit (EBDIT)
|Operating Profit Margin (%)
|Profit before Tax
|Profit after Tax/(Loss)
|Net profit margin (%)
|No. of Shares (eoy)
|Earnings per share*
Consequently, the company's operating margin has plummeted drastically by 520 basis points. This has put pressure on the bottomline of the company.
Borrowings have increased to meet working capital requirements consequently, interest charges have gone up substantially. The rise in depreciation is due to capitalisation of the diesel hydrodesulphurisation plant, which was commissioned in FY00.
All the above factors have contributed to the bottomline being hit. At Rs 86 the company is trading at a multiple of 3.9 on 2QFY01 annualised earnings.
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