MRPL All Set To Expand Its Retail Outreach

Interview: Shri Sanjay Varma

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Shri Sanjay Varma Managing Director (Additional Charge) & Director (Refinery), MRPL

In Q1FY24, the company reported a decline of 47 per cent in consolidated net profit at ₹1,014.79 crore. What were the contributing factors for the company’s muted performance?

In the previous year, during the first quarter, profit margins reached an unprecedented peak due to the eruption of the Russia-Ukraine conflict. The said geopolitical event caused a surge in high-speed diesel (HSD) cracks, which skyrocketed to USD 40 per barrel. Consequently, the prices of all petroleum products soared to historic highs, resulting in exceptional profits for the first quarter of the fiscal year 2022-23. However, the current scenario reflects market stabilisation and margins have reverted to levels reminiscent of the pre-war period. The Q1FY24 decline in margins with respect to Q1FY23 is on account of market correction.

Despite the above, it is important to highlight the notable performance of the company in terms of physical metrics. Specifically, in Q1FY23-24, Mangalore Refinery and Petrochemicals Limited (MRPL) efficiently processed 4.41 million metric tons (MMT) of crude oil, exhibiting an improvement compared to 4.325 MMT processed in the same quarter of the previous year. Furthermore, various other key physical performance indicators of the company demonstrated remarkable performance during the quarter and showcased a sequential improvement. In addition, despite lower cracks, MRPL was able to generate a GRM of USD 9.81 per BBL for Q1 of 2023-24 because of excellent capacity utilisation.

At the moment, what are your top three strategic priorities?