MRPL stock slumps 5% after co disappoints investors with weak Q2 show

Shares of Mangalore Refinery and Petrochemicals Ltd (MRPL) dipped as much as 5.52 per cent at Rs 156.45 per share on the BSE in Monday’s intraday trade. The investors turned net sellers on the stock after the company, a subsidiary company of ONGC and Schedule ‘A’ Mini Ratna posted a net loss in its quarterly earnings for the second quarter of the financial year 2024-25 (Q2FY25). 

The PSU firm reported revenue from operations of Rs 28,786 crore in Q2FY25, an increase from Rs 22,844 crore in the same period last year, a rise of 26 per cent year on year (Yo-Y). 

 

However, the company recorded a loss before tax of Rs 1,041 crore, compared to a profit before tax of Rs 1,606 crore in Q2FY24. The loss after tax stood at Rs 682 crore, in contrast to a profit after tax of Rs 1,059 crore in the previous year's corresponding quarter. The gross refining margin (GRM) dropped significantly to US$ 0.55 per barrel, down from US$ 17.11 per barrel in Q2 FY24.

For the half year ended of FY25 (H1FY25), the company posted revenue from operations of Rs 56,075 crore, up from Rs 47,669 crore in H1FY24. The loss before tax was Rs 940 crore, a significant shift from the profit before tax of Rs 3,164 crore in the previous year's first half. Similarly, the company reported a loss after tax of Rs 617 crore, compared to a profit after tax of Rs 2,072 crore in H1 FY 2023-24.

MRPL is a Central Public Sector Enterprise (CPSE) under the Ministry of Petroleum & Natural Gas (MoP&NG) Government of India (GoI). The company is engaged in the business of refining crude oil. It is a subsidiary of Oil and Natural Gas Corporation Limited (ONGC) which holds 71.63 per cent equity stake in the company.

MRPL share price history

The company’s stock has outperformed the market year to date as it has risen 20.3 per cent, while gaining 55.5 per cent in the last one year. In comparison BSE Sensex has risen 12.4 per cent year to date and 24.3 per cent in a year. 

The company has a total market capitalisation of Rs 27,989 crore. Its shares are trading at a price to earnings multiple of 31.99 times and at an earning per share of Rs 5.18. 

At 2:16 PM, the stock price of the company declined by 3.71 per cent at Rs 159.45  a piece on the BSE. By comparison, the BSE’s Sensex was up 0.10 per cent to 81,307.02 level.