Petrochemical
MRPL swings to profit on lower sales volume
Company registered a net profit of Rs. 35.84 crore in the second quarter of current fiscal as against a loss of Rs. 574.45 crore in the corresponding period of the previous year.
- By ICN Bureau
| October 30, 2020
Mangalore Refinery and Petrochemicals Ltd (MRPL) registered a net profit of Rs. 35.84 crore in the second quarter of current fiscal as against a loss of Rs. 574.45 crore in the corresponding period of the previous year.
The company had reported a loss of Rs. 519.86 crore in the first quarter of 2020-21 due to low crude market demand caused by Covid-19 lockdown.
The board of MRPL also approved raising funds of up to Rs. 5,000 crore through issue of non-convertible debentures (NCDs).
The total income of the company stood at Rs.9715.10 crore during the Q2 as against Rs.15281.12 crore during the second quarter of 2019-20.
Crude throughput for the half year was significantly lower due to lower demand for petroleum products on account of Covid pandemic. The capacity utilisation gradually improved during the second quarter as compared to the previous quarter of current financial year, stated the company statement.
It said that the management has assessed the potential impact of Covid based on the current circumstances and expects no significant impact on the continuity of the operations of of the business on long-term basis.
As regards the recoverability of assets and financial resources, performances of contractual liability and obligations, and ability to service the debts and liabilities, the company expects to fully recover the carrying amounts of the assets and comfortably discharge its debts and obligations, it said.
The company is positive on long-term business outlook as well as its financial position. However, the company is closely monitoring any material changes to future economic conditions, it added.
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