MOSL: MRPL (Neutral)-Core GRM lower than estimated
MRPL: Core GRM lower than estimated
(MRPL IN, Mkt Cap USD2.1b, CMP INR84, TP INR88, 5% Upside, Neutral)
- MRPL's reported EBITDA of INR8.1b (+40% YoY, -22% QoQ) for 1QFY19. The company booked a forex loss of INR3.9b v/s a forex gain of INR315m in 1QFY18 and a forex loss of INR1.5b in 4QFY18. Excluding the forex loss, EBITDA stood at INR11.9b (+117% YoY, +1% QoQ), 14% higher than our estimate of INR10.6b due to higher inventory gain of USD3.49/bbl. The company booked an exceptional item of INR262m on account of estimated cost for purchase of Renewable Energy Certificate (REC) from the Indian Energy Exchange (IEX). Adj. PAT stood at INR3.8b (v/s est. of INR5.4b; +62% YoY, -30% QoQ), increased difference at the PAT level being mainly due to a higher tax rate of 36% (v/s est. of 33%). Tax rate stood at 36% in 4QFY18 and 30% in 1QFY18.
- Core GRM stood at USD4.8/bbl v/s benchmark Singapore GRM of USD6.1/bbl, USD6.48/bbl in 4QFY18 and USD7.07/bbl in 1QFY18. Inventory gain stood at USD3.49/bbl.
- Crude throughput stood at 3.85mmt (-3% YoY, -11% QoQ), implying 103% utilization in the quarter, as against a throughput of 4.3mmt (115% utilization) in 4QFY18 and 4.0mmt (106% utilization) in 1QFY18. The lower throughput was due to the planned shutdown of HCU-1.
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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