Motilal Oswal - Mangalore Refinery Petrochemicals Ltd. (MRPL) MOSL: MRPL (Neutral)-EBITDA above est.-forex gain boosts PAT further

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Motilal Oswal

Swarnendu Bhushan

MOSL: MRPL (Neutral)-EBITDA above est.-forex gain boosts PAT further

mrpl: EBITDA above est.; forex gain boosts PAT further

(MRPL IN, Mkt Cap USD3.5b, CMP INR135, TP INR124, 8% Downside, Neutral)

MRPL reported 4QFY17 EBITDA (excl. forex gain of INR3.1b) of INR12.5b (-19% YoY, +9% QoQ), above our estimate of INR9.2b, led by higher-than-estimated GRM of USD8.25/bbl (est. of USD6.1). Interest cost came in at INR1.2b (est. of INR1.4b, -17% YoY, -13% QoQ). Other income of INR375m (-84% YoY, -41% QoQ) missed our estimate of INR675m. Adj. PAT was INR8.7b (est. of INR4.4b; -35% YoY, +54% QoQ). The exceptional item of INR15.9b was on account of exchange rate variation gain on the settlement of overdue payables to Iran which got accumulated.
GRM above estimates: Reported GRM stood at USD8.25/bbl, likely led by inventory gain during the quarter. Benchmark Singapore GRM stood at USD6.4/bbl in 4QFY17.
-Crude throughput stood at 4.23mmt (-6% YoY, -3% QoQ), implying 113% utilization in the quarter. The throughput was lower on account of shutdown of one of the primary units for five days during the quarter.

18/05/2017 8 EN

Underlying

Mangalore Refinery & Petrochemicals Ltd.

Mangalore Refinery and Petrochemicals Limited is a holding company .The Company is engaged in the business of refinery and manufacturing of refined petroleum products. Its segments include Domestic Sale and Export Sale. The Company is involved in the production of liquid or gaseous fuels, illuminating oils, lubricating oils or greases or other products from crude petroleum, and manufacture of other petroleum products, such as bitumen. Its products include pet coke, liquefied petroleum gas, fuel gas, mixed xylene, high speed diesel (HSD), vacuum gas oil (VGO) and automatic transmission fluid (ATF). It operates retail outlets under the HiQ brand. It has design capacity to process approximately 15 million metric tons per annum and over two hydrocrackers producing diesel. It has over two catalytic reformers producing unleaded petrol of high octane. It offers petroleum and petrochemical products to consumers in various industries, such as mining, power, agriculture, fertilizers and paint.

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INE103A01014 National Stock Exchange of India India

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Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

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Analysts

Swarnendu Bhushan

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MOSL: MRPL (Neutral)-EBITDA above est.-forex gain boosts PAT further

MOSL: MRPL (Neutral)-Strong 1QFY23, but consistency is key

With a more favourable environment, MANGALORE REFINERY improves to Positive

MOSL: MRPL (Neutral)-Better than expected core GRM, but concerns remain

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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