Mangalore Refinery & Petrochemicals Ltd. (MRPL) shares surged by as much as 11.45% in early trade on Thursday after the company reported a sharp sequential jump in profit for the June quarter, supported by a one-time exceptional gain.
The stock was trading at Rs 174.66 apiece on the NSE around 9:57 am today, after gaining around 17.41 points since its previous close at Rs 157.47. During the period, Nifty 50 was only up by 0.24%, reflecting a flat equity market today.
Investors are also tracking the company's strong revenue growth, even as operating margins remained under pressure.
Revenue, Net profit Up but Margins under Pressure
MRPL reported a consolidated net profit of Rs 946 crore for the quarter ended June 30, compared with Rs 117 crore in the March quarter. The sharp rise in profit was primarily driven by a one-time exceptional gain of Rs 472 crore recorded during the quarter.
Revenue from operations increased 59.7% quarter-on-quarter to Rs 38,254 crore, up from Rs 23,950 crore in the preceding quarter, reflecting a strong recovery in the company's topline.
Despite the sharp jump in profit and revenue, the company's operating performance softened during the quarter.
EBITDA declined 26.1% quarter-on-quarter to Rs 1,318 crore, compared with Rs 1,783 crore in the previous quarter. Consequently, the EBITDA margin contracted to 3.4% from 7.4% in the March quarter, reflecting pressure on core operating performance.
ALSO READ: MRPL Q1 Results: Profit Spikes 8x On One-Time Gain; Revenue Jumps 60%
Throughput, Infrastructure Updates In Focus
In a regulatory filing, MRPL also announced that quarterly throughput, including crude and other products, improved to 4.43 MMT in the June quarter from 4.35 MMT in the preceding quarter and 3.52 MMT a year ago.
The company also stated that during the quarter it received PNGRB approval for its ATF pipeline to Kempegowda International Airport.
Furthermore, the company commenced product loading at terminals in Mangaluru, Hindupur depot in Andhra Pradesh, and Ennore in Tamil Nadu.
MRPL also received ISCC CORSIA certification for co-processing Used Cooking Oil (UCO) to produce Sustainable Aviation Fuel (SAF), marking a milestone in its sustainable fuel initiatives.
Weekly Rally Offset Monthly Losses
MRPL stocks have been rallying for the past few sessions, gaining over 7.8% in the past week, which helped in offsetting losses made during the past month.
Over a year, the stock gained over 9.7%, while the broader market index Nifty 500 remained muted with a drop of 0.64%.
The stock traded between Rs 120.4 and Rs 212.31 per share during the past 52 weeks, and its current market capitalisation as at the end of the preceding session was Rs 29,490.98 crore.
The stock is currently trading at a price-to-earnings multiple of 8.89 times.
ALSO READ: Mangalore Refinery Shares Extend Rally, Gain 4% As Strategic Petroleum Reserve Plan Boosts Sentiment
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