MOSL: MRPL (Sell)-Poor operating performance-core GRM at USD5.3/bbl
​MRPL: Poor operating performance; core GRM at USD5.3/bbl
(MRPL IN, Mkt Cap USD3.5b, CMP INR122, TP INR110, 10% Downside, Sell)
- MRPL's 2QFY18 EBITDA came in at INR9.1b (+16% YoY, +56% QoQ), significantly below our estimate of INR13.6b, due to lower GRM and throughput. The company booked a forex loss of INR670m during the quarter v/s forex gain of INR315m in 1QFY18 and INR1.6b in 2QFY17. Operational performance was impacted by refinery maintenance shutdown during the quarter. Also, secondary units were not operational during most of the quarter due to shutdown. While interest cost came in at INR1.1b (est. of INR1.3b; -6% YoY, -2% QoQ), depreciation stood at INR1.7b (est. of INR1.9b; +1% YoY, +4% QoQ). Other income of INR828m (-11% YoY, +305% QoQ) was higher than our estimate of INR588m, led by benefits from government grants. Effective tax rate stood at 31% v/s 33% in 1QFY18 and 31% in 2QFY17. Adj. PAT of INR4.9b (+19% YoY, +112% QoQ) was significantly below our estimate of INR7.3b.
- Core GRM at USD5.3/bbl: Core GRM stood at USD5.3/bbl v/s benchmark Singapore GRM of USD8.3/bbl, USD6.5/bbl in 1QFY18 and USD5.5/bbl in 2QFY17. Inventory gain stood at USD2.7/bbl in 2QFY18 v/s a loss of USD2.3/bbl in 1QFY18 and USD1/bbl in 2QFY17.
- Crude throughput stood at 3.5mmt (-12% YoY, -11% QoQ), implying 94% utilization in the quarter, as against throughput of 4.03mmt (107% utilization) in 2QFY17 and 3.98mmt (106% utilization) in 1QFY18.
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.
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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