Mangalore Refinery and Petrochemicals Ltd (MRPL) announced its financial results for the first quarter, reporting a net loss of ₹270.7 crore, a significant turnaround from a net profit of ₹73.2 crore in the same period last year, as per the earnings reported after market close.
Shares of MRPL, a unit of the state-owned ONGC, are down nearly 36% from a year earlier. The stock ended Friday up more than a percent, closing the week with gains of over 5%.
Gross refining margin fell to $ 3.88 per barrel compared to $ 4.7 three months earlier. GRM is a measure of profitability, which has been on a downtrend due to declining demand, and thereby prices, for crude oil and its derivative products.
The Mangaluru-based company’s revenue declined by 25.3% year-on-year to ₹17,356.2 crore from ₹23,246.6 crore in Q1 of the previous fiscal. Earnings before interest, tax, depreciation, and amortisation (EBITDA) also saw a sharp drop of 69.5%, amounting to ₹179.5 crore against ₹587.7 crore a year earlier.
The EBITDA margin fell to 1% from 2.5% in the corresponding quarter last year, reflecting pressures on profitability amid challenging market conditions.
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(Edited by : Sriram Iyer)
