Mangalore Refinery and Petrochemicals Limited (MRPL) shares are down nearly 5% today after the company posted disappointing Q2 FY25 results, impacted by weak gross refining margins (GRMs). As of 11:00 AM, MRPL’s stock was trading lower following the release of its financials, which highlighted a significant decline in profitability despite year-on-year revenue growth.
For the quarter ending September 30, 2024, MRPL reported revenue from operations of ₹28,785.92 crore, up 27% YoY compared to ₹22,904.73 crore in Q2 FY24. However, the company’s net loss for the quarter stood at ₹696.94 crore, a sharp contrast to the ₹1,051.64 crore profit posted in the same quarter last year. The company also reported an EBITDA loss of ₹470 crore, indicating severe operational challenges.
Key Financial Highlights:
- Revenue from Operations: ₹28,785.92 crore, a 27% YoY increase.
- Net Loss: ₹696.94 crore, compared to a net profit of ₹1,051.64 crore in Q2 FY24.
- Total Expenses: ₹29,886.92 crore, up from ₹21,312.70 crore in Q2 FY24, driven by rising material costs and operational expenses.
- Other Income: ₹37.40 crore, down from ₹60.85 crore in the previous year.
- Tax Credit: ₹366.71 crore for the quarter.
Despite the revenue growth, the company’s margins were pressured due to rising expenses, leading to a steep drop in profitability. The poor performance of MRPL in this quarter can largely be attributed to weak GRMs, as higher raw material and operational costs weighed heavily on earnings.
Investors reacted negatively to the report, sending MRPL shares lower, reflecting concerns over the company’s future profitability amid operational challenges.
Disclaimer: This article is for informational purposes only and should not be construed as financial advice. Please consult a financial advisor before making any investment decisions.
