MRPL slumps after poor show

MRPL is currently the top loser on the BSE, down almost 7.5% at Rs.52 levels. It hit an intra day low at Rs.50.95. Its 52-week low stands at Rs.45.10.

The performance of the company for Q2FY16 has been disappointing, to put it mildly. The fall in crude prices leading to lower realisations and a massive forex loss of Rs.703 crore on account of rupee depreciation once again pushed the company into the red. It ended the quarter with a net loss of Rs.910 crore v/s loss of Rs.951 crore in previous Q2. But in Q1FY16, the company had managed to turnaround with a net profit of Rs.406 crore.

Its throughput was flat at 3.46MMT and exports were down 11% at 1.14 MMT. Total turnover was thus down 25% (YoY) at Rs.12,488 crore. Export turnover showed a sharp 45% drop. The Gross Refining Margin (GRM) for the quarter  - which is earning on turning every barrel of crude oil into fuel was at 34 cents during current Q2 v/s a negative GRM of $4.04/barrel. The company said that its operating GRM was impacted by inventory loss due to a steep fall in crude and product prices.