Mangalore Refinery & Petroleum (MRPL), a subsidiary of Oil and Natural Gas Corporation Limited (ONGC), has reported its financial results for the first quarter, showing a mixed performance with improvements in some areas despite challenging market conditions.

Reduced Net Loss

MRPL reported a net loss of ₹271.97 crore for Q1, marking a significant improvement from the ₹363.63 crore loss recorded in the same quarter of the previous year. This reduction in net loss demonstrates the company's efforts to enhance operational efficiency and manage costs effectively in a challenging business environment.

Revenue Decline

Despite the improvement in net loss, MRPL experienced a substantial decline in revenue. The company's revenue from operations stood at ₹20,988.03 crore for the quarter, down from ₹27,289.40 crore in the corresponding quarter of the previous year. This represents a year-on-year decrease of approximately 23.10%.

EBITDA and Margin Pressure

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a significant drop to ₹180.00 crore in Q1, compared to ₹1,130.00 crore in the previous quarter. Consequently, the EBITDA margin contracted to 0.85% from 4.09% quarter-on-quarter, reflecting the challenging market conditions and pressure on refining margins.

Financial Position

As of the end of the quarter, MRPL's net worth stood at ₹12,657.20 crore. The company's debt-to-equity ratio was 1.08, indicating a slight increase in leverage compared to the previous quarter's ratio of 0.99.

Operational Highlights

The company's financial results reflect the volatile nature of the refining industry, which is subject to fluctuations in crude oil prices and refining margins. Despite the revenue decline, MRPL's efforts to reduce its net loss suggest ongoing initiatives to optimize operations and manage costs effectively.

Looking Ahead

While MRPL faces challenges in the current market environment, the company's ability to narrow its losses indicates resilience. The management is likely to focus on operational efficiencies, cost management, and exploring opportunities to improve refining margins in the coming quarters.

Investors and stakeholders will be watching closely to see how MRPL navigates the ongoing market volatility and works towards returning to profitability in future quarters.

Mangalore Refinery and Petrochemicals Limited (MRPL), a Schedule 'A' Miniratna Central Public Sector Enterprise, has announced its financial results for the fourth quarter of the fiscal year 2024-25, revealing a significant decline in profitability despite improved revenue.

Q4 Financial Highlights

• Net profit decreased by 68% to ₹363.00 crore, down from ₹1,136.00 crore in the same quarter last year
• Revenue from operations decreased by 2.9% to ₹24,596.00 crore, compared to the previous year
• EBITDA fell 51.7% to ₹1,130.00 crore from the year-ago period
• EBITDA margin contracted to 4.6% from 9.2% year-over-year

Annual Performance

MRPL's annual performance for FY 2024-25 reflects the challenges faced by the refining sector:

• Full-year net profit decreased to ₹50.58 crore, down from ₹3,595.93 crore in the previous fiscal year
• Annual revenue increased to ₹1,09,277.49 crore, up from ₹1,05,223.28 crore in FY 2023-24

Financial Position

As of March 31, 2025, MRPL's financial position remains robust:

The debt-to-equity ratio was maintained at 0.99.

Operational Performance

MRPL's operational efficiency is reflected in its inventory management and sales performance:

Market Outlook

The significant year-over-year decline in MRPL's Q4 net profit and EBITDA highlights the challenging market conditions faced by the refining industry. The company's ability to maintain revenue levels close to the previous year, despite these pressures, demonstrates its operational resilience and market positioning.

Corporate Governance

The company's board has not recommended any dividend for the financial year 2024-25, likely focusing on preserving capital to navigate the volatile market conditions.

MRPL continues to maintain its status as an ISO 9001, 14001, and 50001 certified company, underscoring its commitment to quality, environmental management, and energy efficiency.

Conclusion

As the refining sector faces ongoing challenges, MRPL's Q4 performance reflects the difficult market environment, with significant declines in profitability and margins. The annual results highlight the need for continued strategic management and cost optimization measures to improve financial performance in the face of market uncertainties.