Mangalore Refinery and Petrochemicals Limited

Shyamprasad Kamath

MD and CEO, Mangalore Refinery and

10.42%

the refinery once again. − Fuel and loss and product ease, the company posted a fuel and loss of 10.42%. Yes, the number is slightly on a higher side because post turnaround, there were some initial hi

10%

ccups in the plants. But going forward, we expect this to be normal and the target could be around 10% for the rest of the fiscal year. − Revenue on the financial performance. Revenue from operations

25,953 crore

the fiscal year. − Revenue on the financial performance. Revenue from operations came at around 25,953 crores, reflecting the rise in the cracks and the base crude price compared. We reported an EBITDA of 1,

1,565 crore

res, reflecting the rise in the cracks and the base crude price compared. We reported an EBITDA of 1,565 crores and a PAT of 639 crores and a substantial jump over the last year Q2 and subsequently from Q1 of

639 crore

n the cracks and the base crude price compared. We reported an EBITDA of 1,565 crores and a PAT of 639 crores and a substantial jump over the last year Q2 and subsequently from Q1 of ’25-26. 1 − O

rs,

hy for the rest of the year. However, global markets, as we know, are a complex play of many factors, including demand supply, geopolitical scenarios, etc. Hence, hazarding a forecast may not be approp

3%

nce, hazarding a forecast may not be appropriate here. − Domestically, the diesel grew at around 3% year-on-year basis, while the gasoline demand remained resilient at around 7% growth. − ATF, we

7%

esel grew at around 3% year-on-year basis, while the gasoline demand remained resilient at around 7% growth. − ATF, we saw growth of about 1% year-on-year and going forward, the domestic demand gro

1%

while the gasoline demand remained resilient at around 7% growth. − ATF, we saw growth of about 1% year-on-year and going forward, the domestic demand growth is expected to be resilient and our foc

100%

, our operating capacity is still either at design or slightly above the design numbers, more than 100%. And the secondary process unit is also running more than its design number. − As far as the aro

40%

– Participant: − Okay. And so that, that would be around what, how much would that be, like 35- 40% or lower than that? − Mr. Shyamprasad Kamath – MD and CEO, Mangalore Refinery and Petrochemical

0.6 million

estimates have been cut down through the year, what started at like 1.2-1.3 has now come down to 0.6 million barrels a day. Is this sustaining at these levels or you're seeing demand to be trending even lowe

“But going forward, we expect this to be normal and the target could be around 10% for the rest of the fiscal year.”

“− Various agencies forecast tells us that cracks may remain healthy for the rest of the year.”

“Hence, hazarding a forecast may not be appropriate here.”

“− ATF, we saw growth of about 1% year-on-year and going forward, the domestic demand growth is expected to be resilient and our focus on retail outlets will continue to deliver so that incremental margins are delivered for us.”

“− We expect Q3 also to be above 4.43 MMT of crude processing.”

“− We will be delighted and open to answer any of your queries.”

“But, you know, there is another news which has also come saying that we will be doing what is best in the Country’s inerest and that's what the government has made a statement, also made a counter statement.”

“− Now, going forward, yes, it is not just the Russian barrel that we are going to look at.”

“And on an economic basis, I am confident that we will be able to sail through.”

“However, there will be indicative figures for our management consumption.”

Petrochemicals Ltd

52

Ltd

6

Petrochemicals Ltd

− Good morning to everyone. And thank you for joining us on the second quarter earnings call. − I am Shyamprasad Kamath, MD and CEO of Mangalore Refinery & Petrochemicals Ltd. Along with my leadership team, I will walk you through our Q2 performance, the operating environment we faced, and our near term priorities. − First, the operating highlights for the quarter: − Throughput, we processed 4.4 MMT of crude and other feedstocks. We completed our turnaround of one of the complex during Q1. And post that, we have come back fully. And that is how we have been able to display this kind of an excellent throughput, showing our capabilities of the refinery once again. − Fuel and loss and product ease, the company posted a fuel and loss of 10.42%. Yes, the number is slightly on a higher side because post turnaround, there were some initial hiccups in the plants. But going forward, we expect this to be normal and the target could be around 10% for the rest of the fiscal year. − Revenue on the

Petrochemicals Ltd

− While, yes, there is some kind of a tweet which has come from the US President today. But, you know, there is another news which has also come saying that we will be doing what is best in the Country’s inerest and that's what the government has made a statement, also made a counter statement. − Now, going forward, yes, it is not just the Russian barrel that we are going to look at. We have already started looking at other crudes which are available on discount by our own methods of sourcing crude. And on an economic basis, I am confident that we will be able to sail through. Regarding the Russian barrels, we still believe that government may not be, government has been maintaining that what is the lowest cost of energy sourcing that will continue for us. So, we are confident that it will continue in the near future. − Mr. Achal Shah – Participant: − Understood. And, sir, the final question is with respect to the reported GRMs and any inventory impact on those reported. So, what will

Petrochemicals Ltd

− Good morning. This is Devendra here. − See, following the industry practice and peer companies, we have discontinued reporting GRM in a published kind of way. However, there will be indicative figures for our management consumption. But looking at the overall published results, we should be able to figure out that the GRMs reflect the reality of good cracks in the current quarter. And roughly, I'd say it is double of the previous. − Mr. Achal Shah – Participant: − Got it, sir. Thanks. That's it. − Moderator – PL Capital: − Varadha, you can unmute yourself and go ahead with your question. − Mr. Varadha – Participant: − Thanks. Just a couple of queries from my side, sir. With regard to the use of gas in the system, has there been an increase quarter-on-quarter? And, how do you see it going forward? 3 − Mr. Shyamprasad Kamath – MD and CEO, Mangalore Refinery and

Petrochemicals Ltd

− We are consuming gas both as a fuel and as a feed. So, on an economic basis, we keep on looking at it and we have been optimizing the gas intake. Going forward, we are hopeful that the gas prices are going to be economical only, for us. − Mr. Varadha – Participant: − So, at the maximum, what is the kind of amount of gas which you can potentially use in your refineries for both hydrogen as well as fuel? − Mr. Shyamprasad Kamath – MD and CEO, Mangalore Refinery and

Petrochemicals Ltd

− Nanda, you would like to give some numbers on that? Nanda, you are on mute. − Mr. Nandakumar – Director of Refineries, Mangalore Refinery and

Petrochemicals Ltd

− We have a hydrogen unit which can take gas and we have power plants in our refinery as well as in the aromatic complex which has gas turbines. So, both can also consume gas. And in the extreme case, we can even take some gas into our general fuel of the refinery. − So presently, I think I can put my outer limit considering the refinery and aromatic complex, it will be 0.7 MM SEMD. And with some modification in the near term, probably we can go up to as high as 1 MM SEMD natural gas. Though presently, we are not up to that limit, we are lower because of the economic outlook. The gas is not, to that extent, it is not yet, but we would be able to capitalize on that opportunity. − Mr. Varadha – Participant: − And with that, what would be the current run rate, sir? You said 0.7 to 1. − Mr. Nandakumar – Director of Refineries, Mangalore Refinery and