MRPL having a dream run

MRPL is having a fantastic run on the bourses since the past few days, consistently hitting new highs. Today too, it has hit a new high at Rs.80.65, with volumes jumping up almost 2.5 times.

This exuberance on the counter is on the back of its very good performance for Q4FY14, where it managed to post a turnaround. For the quarter, the company posted a net profit of Rs.1067 crore compared to the loss of Rs.62 crore in previous Q4. What really helped were three factors – firstly, a hefty forex gain of Rs.575 crore, secondly a 9 times jump in other income at Rs.157 crore v/s Rs.17 crore in previous Q4 and thirdly, a good overall performance too. Net sales for the quarter was up 3% at Rs.19.127 crore and EBITDA jumped up almost 4 times to Rs.1099 crore.

There was also reduction in to big ticket expense items – tax included deferred tax assets and was at Rs.203 crore gain. The company has stated that it has recognised the deferred tax asset (net of liabilities) during Q4 amounting to Rs 276 crore as against nil last year. The company has provided for MAT tax of Rs 73 crore in Q4. Its interest cost too came down from Rs.71 crore to Rs.58 crore. GRM improved was also pretty significant at US$3.18/barrel v/s US$1.98/barrel (YoY). The company expects GRMs to remain high on account of completion of its expansions. The company ended FY14 with a net profit at Rs.601 crore v/s net loss of Rs.179 crore in FY13. GRM for the fiscal rose marginally from US$2.67/barrel to US$2.45/barrel.