Mangalore Refinery and Petrochemicals (500109) Q4 96/97 earnings summary

Executive summary

• First full operating year after commissioning in March 1996; refinery processed 2.806 MMT of crude and earned PAT of Rs.90.52 crore for FY1996-97.

• Capacity expansion from 3 MMTPA to 9 MMTPA was underway, with completion expected in 1999; management expressed confidence in competing after expansion.

Financial highlights

• Turnover was Rs.1,159.47 crore; profit before depreciation, interest and tax was Rs.529.78 crore, and interest was Rs.308.22 crore.

• Profit after interest but before depreciation and tax was Rs.221.56 crore; depreciation was Rs.117.74 crore, MAT provision Rs.13.30 crore and PAT Rs.90.52 crore.

• No dividend was proposed; Rs.81.95 crore was transferred to the Debenture Redemption Reserve, leaving the prior-year loss of Rs.8.57 crore carried forward.

Outlook and guidance

• The 3-to-9 MMTPA expansion was estimated at Rs.3,690 crore and scheduled for implementation over 36 months from the project zero date; completion was expected in 1999.

• Management expected the enlarged refinery to meet challenges from petroleum-sector deregulation and intensifying competition.