Earnings Outlook
Weak refining margin to hit MRPL's net profit in Jan-Mar
This story was originally published at 21:23 IST on 25 April 2025
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By J. Navya Sruthi
MUMBAI – Mangalore Refinery and Petrochemicals Ltd. is expected to report weak earnings for the March quarter due to low gross refining margins and losses in the liquefied petroleum gas business.
The company is expected to report a net profit of INR 1.80 billion-INR 3.94 billion for the March quarter, according to three brokerages that track the company, sharply down from the INR 11.37 billion net profit it had reported in the year-ago quarter. In the December quarter, the company had reported a net profit of INR 3.04 billion.
Prabhudas Lilladher Pvt. Ltd. expects the company to report a net profit of INR 2.60 billion for the March quarter, down 77% on year. Motilal Oswal Financial Services Ltd. estimates the net profit at INR 1.80 billion, nearly 84% lower from the corresponding quarter previous year. Elara Securities estimates the net profit at INR 3.94 billion, down 65.4% on year.
The net sales of the company is seen at INR 214.74 billion-INR 225.70 billion. In the December quarter, the company had reported net sales of INR 218.71 billion and INR 253.29 billion in the year-ago quarter.
The company's operating profit is expected to fall due to lower refining margins, Prabhudas Lilladher said in an earnings preview. The brokerage expects the company's gross refining margin to be $5.4 per barrel in the March quarter. Elara Securities also expects the company's gross refining margin at $5.4 per barrel in the March quarter compared with $5.0 per barrel in the December quarter and $9.4 per barrel in the year-ago quarter.
Motilal Oswal expects the company's refinery throughput at 4.6 million tonnes, unchanged from the previous year. It estimates the gross refining margin at $5.3 per barrel for the March quarter. "Persistently high valuations remain a concern, given the current highly volatile macro environment," the brokerage firm said in a report.
Shares of Mangalore Refinery and Petrochemicals ended Friday at INR 136.40, down 3.4% on the National Stock Exchange ahead of its earnings Saturday.
Following are the Jan-Mar earnings estimates for Mangalore Refinery and Petroleum based on reports from three brokerage firms in descending order of the estimate of net profit:
Brokerage | Net sales(INR million) | Net profit (INR million) | EBITDA (INR million) |
Motilal Oswal Financial Services Ltd | 221,400.00 | 1,800.00 | 8,400.00 |
Prabhudas Lilladher Pvt Ltd | 225,700.00 | 2,600.00 | 9,700.00 |
Elara Securities (India) Pvt Ltd | 214,736.00 | 3,936.00 | 10,825.00 |
RANGE | 214,736-225,736 | 1,800-3,936 | 8,400-10,825 |
End
Edited by Akul Nishant Akhoury
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