MANGALORE Refinery and Petrochemicals‘ (MRPL) Q4 results received a boost from the tax adjustments resulting in a 24% growth in net profit to Rs 225.4 crore. The company’s operating performance during the quarter was affected due to lower refinery margins as well as lower volumes.
As the global market witnessed weak gross refining margins (GRMs), MRPL’s GRMs came down to $5.6 per barrel during the quarter, which was the lowest in the entire year. This weakened its operating margins, resulting in a 26% fall in the operating profit. It also reported a 2.2% dip in its refinery throughput which stands at 3.22 mt. For the March 2008 quarter, MRPL reported a spurt in revenues — which grew 41% to Rs 9,500 crore — owing to higher fuel prices in the global market. However, the operating margins were hit on high raw material and staff costs.
The cost of raw material as a percentage to net sales jumped to 93.5% during the current quarter from 88.5% in the corresponding previous quarter. The spurt in staff costs was even steeper. The company made provisions for revision in salaries of its staff, which resulted in a 244% growth in its wage bill. The resultant operating profits were 26% lower on a y-o-y basis. The company recorded a loss of Rs 23.7 crore on forex fluctuations during Q4 vis-à-vis profit of Rs 25.2 crore in Q4 last year. This resulted in a 77% erosion in the other income for the quarter. The resultant PBDIT was 29% lower on a y-o-y basis. After a fall in interest cost and almost flat depreciation charge, the PBT was 36% down at Rs 308.9 crore. Moreover, the company had to provide for higher current taxes due to changes in calculation of Minimum Alternative Tax (MAT).
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