The Hindu Business Line : Higher margins boost MRPL net

Mangalore Refinery and Petrochemicals Ltd (MRPL) has earned a net profit of Rs 331.74 crore in the second quarter of the current fiscal as against Rs 9.29 crore in the same period of the previous year after providing for interest and finance charges of Rs 36 crore (Rs 59 crore), depreciation of Rs 95 crore (Rs 87 crore) and tax provision of Rs 26 crore (Rs 5 crore).

Mr R. Rajamani, Managing Director of the company, told Business Line from New Delhi here on Tuesday that the impressive growth in net profit was because of two reasons. The profit in the second quarter of 2006-07 was low because of the discounts given. And this quarter’s margin is extremely good. During the second quarter of 2007-08, the margin was around $6.3 per barrel ($2 per barrel).

“That is very impressive margin and the performance is very good. That is the reason that the profit has gone up so much,” he said.

Turnover of the company stood at Rs 8,852 crore (Rs 8,908 crore). He attributed this to depreciation in the dollar vis-À-vis the rupee. The prices of products are slightly lower because of the rupee appreciation. Crude prices also came down because of the appreciation. “We spent less for raw materials and margins have improved,” he said. The refinery crude throughput during the quarter was marginally higher at 3.22 million tonnes (3.21 mt).

During the half year ended September 30, the gross turnover stood at Rs 17,347 crore, (up 7 per cent from Rs 16,182 crore) and throughput 6.38 mt (5.95 mt). The net profit was Rs 700 crore (Rs 225 crore).

On Tuesday, the MRPL scrip closed 26.77 per cent higher at Rs 80.75, against the previous close of Rs 63.70 on the BSE.

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