MRPL Q1 Review – Abysmal Margins, Operational Performance Continue: Motilal Oswal

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Mangalore Refinery and Petrochemicals Ltd. reported lower-than-estimated Ebitda.

Refining throughput was down 24% QoQ (~82% utilisation rate) on account of slower demand (impacted by the second Covid-19 wave).

As per our discussion with the management, the utilisation rate at the refinery and polypropylene unit continues to hover at 82–85% currently.

Continued concerns over utilisation rates would keep margins under pressure (due to higher opex), impacting profitability.

In its board meeting, MRPL announced the following resolutions:

  • raising funds of up to Rs 50 billion through the issue of non-convertible debentures,

  • Increasing the borrowing limit from Rs 250 billion to Rs 335 billion.

Click on the attachment to read the full report:

Motilal Oswal MRPL Q1FY22 Result Update.pdf


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