MRPLNSEMarch 31, 2025

Mangalore Refinery and Petrochemicals Limited

5,052words
132turns
14analyst exchanges
7executives
Management on call
M.S. Kamath
MANAGING DIRECTOR – MANGALORE REFINERY AND PETROCHEMICALS LIMITED
Devendra Kumar
DIRECTOR OF FINANCE AND
Nandakumar V
DIRECTOR OF REFINERY – MANGALORE REFINERY AND PETROCHEMICALS LIMITED
Bhv Prasad
ED PROJECTS – MANGALORE REFINERY AND PETROCHEMICALS LIMITED
B. Sudarshan
ED REFINERY – MANGALORE REFINERY AND PETROCHEMICALS LIMITED
Subhaschandra Pai T
GGM FINANCE – MANGALORE REFINERY AND PETROCHEMICALS LIMITED
Yogesh Patil
DOLAT CAPITAL MARKETS PRIVATE LIMITED
Key numbers — 35 extracted
INR584 crore
r the fourth quarter 4, the gross refining margin was $6.23 per barrel. Our PBT for quarter 4 was INR584 crores, which is 25% above our Q3 performance. For the financial year, our GRM was $4.45 per barrel and
25%
the gross refining margin was $6.23 per barrel. Our PBT for quarter 4 was INR584 crores, which is 25% above our Q3 performance. For the financial year, our GRM was $4.45 per barrel and PBT was INR113
INR113 crore
is 25% above our Q3 performance. For the financial year, our GRM was $4.45 per barrel and PBT was INR113 crores. Our net debt to equity stands at $0.99, and the total debt as on 31st March is INR13,227 crores
INR13,227 crore
was INR113 crores. Our net debt to equity stands at $0.99, and the total debt as on 31st March is INR13,227 crores. On the operational highlights, crude throughput hit 18 million tons per year, which is 120% of
18 million
al debt as on 31st March is INR13,227 crores. On the operational highlights, crude throughput hit 18 million tons per year, which is 120% of our nameplate capacity, which is a new record for us. The fuel an
120%
27 crores. On the operational highlights, crude throughput hit 18 million tons per year, which is 120% of our nameplate capacity, which is a new record for us. The fuel and loss was at 10.09% for the
10.09%
, which is 120% of our nameplate capacity, which is a new record for us. The fuel and loss was at 10.09% for the fourth quarter 4. And with the ongoing grid infrastructure project, we are expecting that
0.3%
frastructure project, we are expecting that this will be further coming down to by around another 0.3% or 0.4% in the next 18 to 24 months. The distillate yield for quarter 4 was almost 83% and 82% fo
0.4%
ture project, we are expecting that this will be further coming down to by around another 0.3% or 0.4% in the next 18 to 24 months. The distillate yield for quarter 4 was almost 83% and 82% for the fu
83%
d another 0.3% or 0.4% in the next 18 to 24 months. The distillate yield for quarter 4 was almost 83% and 82% for the full year, which reflects on our focus on value-added barrels and not just volume
82%
r 0.3% or 0.4% in the next 18 to 24 months. The distillate yield for quarter 4 was almost 83% and 82% for the full year, which reflects on our focus on value-added barrels and not just volumes. On th
31%
d not just volumes. On the product flexibility, our aviation turbine fuel output has increased by 31% year-on-year basis. The reformat from the aromatic complex has improved by 50%, and benzene, anot
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Guidance — 20 items
M.S. Kamath
opening
“And with the ongoing grid infrastructure project, we are expecting that this will be further coming down to by around another 0.3% or 0.4% in the next 18 to 24 months.”
M.S. Kamath
opening
“In terms of project milestones, we have commissioned our new bitumen train, a wet gas scrubber in the PFCC unit and our marketing terminal at Devangonthi, Bengaluru has already been commissioned and are already adding to the higher margins and reliability.”
M.S. Kamath
opening
“Again, our target is around 17 million tons this year.”
M.S. Kamath
opening
“On the retail network, as on 31st March, we have 167 retail outlets, and we have set a target of 150 retail outlets addition in this year.”
M.S. Kamath
opening
“In short, our Q4 delivered sequential margin recovery and our medium-term strategy is aimed at margin uplift and feedstock agility.”
M.S. Kamath
qa
“FY '25, '26, we are targeting -- our target is to cross 300 TKL.”
Kishan Mundhra
qa
“I -- is there any capex target that you have for FY '26, '27?”
M.S. Kamath
qa
“FY'26, our target is going to be in the range of around INR1,000 crores.”
M.S. Kamath
qa
“And FY'27 also, it could be in a similar range.”
Sabli Hazarika
qa
“So you mentioned 0.4% reduction in fuel and loss, right, from infrastructure project at your opening remarks?”
Risks & concerns — 2 flagged
So, given the global pressure on the margins, have you included this margin in your gross margin?
— S. Ramesh
So till then, expansion won't be a challenge, and demand will be there.
— M.S. Kamath
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Q&A — 14 exchanges
Q
So I have 2 questions. So firstly, if you could highlight if there was any inventory gain during the quarter in your GRM?
M.S. Kamath
Yes. During the quarter, there was an inventory grain of around $0.42 per barrel. Okay. And sir, as a follow-up to this, I mean, the benchmark Singapore GRMs were weaker actually, and your performance was relatively much better. So, were there any other factors at play apart from inventory gains, which led to you reporting a better GRM compared to the benchmark? As I mentioned that our focus has been on improving on value-added products. And we have tried to manage our value addition through maximization on an economic -- whichever products are bringing more economics like aviation turbine fue
Q
So sir, firstly, just I was not able to fully get it. So you mentioned 0.4% reduction in fuel and loss, right, from infrastructure project at your opening remarks?
M.S. Kamath
Yes. And what infra project is it? It's the power import infrastructure project. So it will be like external power, which you will be replacing from... Yes. And anything on the green hydrogen tender that you released a few years back? We -- it is under evaluation now. There are 2 projects which we are doing. The first one is on a build, own and operate basis. For that, what bids we have received and that is under evaluation. The second one was trying to set up a smaller unit within the refinery of a 500 tons per year. That is being retendered now. It is under retendering now. 500 tons, right?
Q
In terms of your paraxylene business, there is an increase in your JV, sir. So how is the paraxylene business? And what do you see as the outlook for the paraxylene business going forward?
M.S. Kamath
Ramesh, sorry to interrupt you. There was some cracking. We can -- there is some disturbance in the line, if you can please put your question again, please. So just wanted to understand your thoughts on how the paraxylene business has performed and how do you rate your prospects for that… I'm sorry, Ramesh, there's a lot of distance and there is some cracking in the voice. You mentioned something about paraxylene, but cannot not able to get questions clearly.
Q
I'm speaking on the phone. Sorry about that. So I was just asking about your performance in the paraxylene business? And how do you see the outlook going forward?
M.S. Kamath
We are not -- we are still not making the paraxylene. We are operating and moving the product as reformate. During the last financial year, we increased our reformate production by almost 30%. We sold about 1.2 million tons of reformate. And we also improved our benzene production from the complex from 130 TMT to 200 TMT during the last financial year. onoc COP aMortim MRPL Mangalore Refinery and Petrochemicals Limited outosidrary of al and Natural Gas Corporation Idrolledr Okay. So in benzene and the reformate, are you getting margins comparable to your refining margins? Or are you taking som
Q
Congratulations for the good set of GRM numbers sir, I have received a few questions from the investor side. Sir, we also wanted to know the MRPL product swing ability like ATF to diesel and the MS to reformate. Is that played any role on the higher GRM side during this quarter?
M.S. Kamath
Sorry, Yogesh, the last part, we could not -- I could not catch you fully, please. If you can repeat the question. Yes. So sir, we wanted to understand for the MRPL product swing ability like ATF to diesel and MS to reformate that played any role on the higher GRM during the quarter for FY '25? Between ATF and diesel, yes, there is a play. But if you really see in quarter 4, the ATF margins were -- ATF cracks were not that attractive compared to diesel in quarter 4. But in between MS and reformate, we -- our first objective is to meet the domestic MS demand, where we supply to our retail outle
Q
So sir, this INR3 per liter kind of a margin that you are targeting in your -- from a retail outlet, sir, if you could clarify if this is gross margin? Or is it net margin net of your freight and other marketing expenses?
M.S. Kamath
It's a net of everything. Okay, net of everything. And, sir, what drives this assumption of this INR3 per litre? I mean, is there a formula to drive this or is there a cost build up kind of a thing? What is the logic of this INR3 per litre? I mean, cannot it be INR4 or INR2 per litre? As we speak, it is much higher. That is why I said on a long term basis, we expect the prices to be adjusted out and this is the kind of margins which have been there historically also and we expect the same thing to continue. Okay. Any IRR assumption that goes behind this INR3 per litre kind of a margin? onoc CO
Q
So you mentioned healthy production in polypropylene. So, given the global pressure on the margins, have you included this margin in your gross margin? How much would be the delta in the GRM from the polypropylene business?
M.S. Kamath
See, as I mentioned, we are not separately reporting on a segment-wise basis, and currently, the gross margin includes everything. So we have not separated out any of the specific or petrochemicals or any marketing segments in that. In terms of the future outlook for your polypropylene business, what is the growth you expect in terms of your sales volume in polypropylene given that there's a lot of competition? So, how do you see that in the next 1, 2 years? Competition is expected because there are newer units which are expected to get commissioned. But the kind of presence and the brand imag
Q
So 2 questions. Firstly, so your exports would be something like 30%, 35% as of now, right? That's the normalized export, right? It was higher in Q4, but on an average, that should be the run rate, right?
M.S. Kamath
Yes. And which are the products and to which countries are you exporting? See, we don't typically have a B2B agreement with any specific country. Our products are typically on a spot cargo. And in the recent past, we also have been entering into a term with the traders. So the traders ultimately will be moving the cargoes to the destination where they have back-to-back arrangements. Okay. Got it. And which are the items which are like most exported? It is basically diesel, then we have the reformate from the aromatic complex and ATF, benzene. Okay, sir. Fair enough. And is there any expansion
Q
This is Soumaya. Thanks for the opportunity, sir. So first question, within this INR1,000 crores of capex, what would be the maintenance capex on the refinery side?
M.S. Kamath
So it is almost 50%. So INR500 crores on marketing, INR500 crores on refining and the refining entire is almost... INR500 crores, it is not entire INR500 crores is marketing. Marketing is one part of it. And the balance, we are looking for some ongoing projects which are there like isobutyl benzene, power import projects. So they're all part of that. onoc COP aMortim MRPL Mangalore Refinery and Petrochemicals Limited outosidrary of al and Natural Gas Corporation Idrolledr Can you get a rough split, sir? Just want to understand on the refinery side, what would be a maintenance capex within this
Q
So there was this discussion about MRPL being merged with HPCL. So is there any progress or time line on that? And what is the thought process on that?
M.S. Kamath
Ramesh, thank you for that question. See, we as MRPL, first of all, we are not aware of any such developments. And even if there are any such developments, it is the 2 promoters who have to ultimately take the call.
Q
Yes, yes. Thank you very much.
Management
Q
Sir, capital expenditure plan of INR1,000 crores per annum for the next 2 years, then what would be the peak debt levels or debt-to-equity ratios one can expect from these capital expenditures? onoc COP aMortim MRPL Mangalore Refinery and Petrochemicals Limited outosidrary of al and Natural Gas Corporation Idrolledr
M.S. Kamath
We are expecting the debt-to-equity to be maintained at around the current levels. We are at around close to 1. So we will be -- we are -- our current -- the things is called projections are at the same levels only. Okay. And sir, as per our understanding, MRPL is processing Barmer crude. Can you share the percentage of Barmer crude processed in FY '25 and typical discounts on the Barmer crude relative to the Indian crude baskets you are receiving? And sir, lastly, on the -- what is the alternate plan once the Barmer crude is shifted to HPCL and Rajasthan Refinery? The Barmer crude -- last yea
Q
Considering the gas consumption at Mangalore refineries and one grid power upgradation is also going on, JT upgradation is also going on. Can you throw some light on the kind of a gas consumption, one thing? Secondly, the grid power upgradation and thirdly, on the JT upgradation?
M.S. Kamath
Last year, we have a gas consumption of around -- close to around 0.55 MMSCMD, which we are targeting to take it to around 0.65 to 0.7 this year. And the grid infrastructure project, the target date for completion is by December. And we are hopeful that we will be able to complete and start drawing the power from there. The JT infrastructure project, the engineering activities have been completed. The long lead item orders have been placed and the tenders for the execution are in the final stages of awards are just ordered. It has just been ordered. onoc COP aMortim MRPL Mangalore Refinery and
Q
So thank you, everyone, and for this interaction. And I hope we could clarify the questions asked and about the last year performance as well as some of the outlook for the coming year. So thank you once again for the coordinator and the participants.
Management
Speaking time
M.S. Kamath
54
Sabli Hazarika
20
Moderator
16
S. Ramesh
13
Yogesh Patil
10
Kishan Mundhra
9
Soumaya
6
Management
4
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Opening remarks
Yogesh Patil
Thank you, Alaric. A very good morning to everyone. I would like to extend a very warm welcome to all the participants and the top management of MRPL. We have with us Mr. M Shyamprasad Kamath, Managing Director; Mr. Devendra Kumar, Director of Finance and CFO; Mr. Nandakumar V, Director of Refinery; Mr. BHV Prasad, ED Projects; Mr. B. Sudarshan, ED Refinery; and Mr. Subhaschandra Pai T, GGM Finance. I will now hand over the call to the Managing Director, Mr. Kamath sir. Over to you, sir.
M.S. Kamath
Thank you, Yogesh. A very good morning to all for joining Mangalore Refinery and Petrochemicals Limited Earnings Call to discuss our fourth quarter and full year results for FY '24, '25. The results release was uploaded to the exchanges and are also available on our website. Just to recapture the major highlights. For the fourth quarter 4, the gross refining margin was $6.23 per barrel. Our PBT for quarter 4 was INR584 crores, which is 25% above our Q3 performance. For the financial year, our GRM was $4.45 per barrel and PBT was INR113 crores. Our net debt to equity stands at $0.99, and the total debt as on 31st March is INR13,227 crores. On the operational highlights, crude throughput hit 18 million tons per year, which is 120% of our nameplate capacity, which is a new record for us. The fuel and loss was at 10.09% for the fourth quarter 4. And with the ongoing grid infrastructure project, we are expecting that this will be further coming down to by around another 0.3% or 0.4% in the
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