Why have the profits of MRPL gone up so sharply in March 2022 quarter?
Answer
Answer
I will come to your profit question, but first let me explain the top line story. For Q4FY22, reported 35.76% growth in sales revenues at Rs28,228 crore. FY22 full year revenues were higher 69.4% at Rs86,064 crore. The growth in sales revenues came on the back of crude prices doubling on a yoy basis. This led to improved gross refining margins plus better inventory translation gains in the quarter. Net cash from operations moved from negative to a positive Rs4,692 crore due to higher cash profits and rise in trade payables.
MRPL Ltd
Rs in Crore
Mar-22
Mar-21
YOY
Dec-21
QOQ
Total Income (Rs cr)
₹ 28,228
₹ 20,793
35.76%
₹ 25,023
12.81%
Net Profit (Rs cr)
₹ 3,008
₹ 269
1019.83%
₹ 589
410.69%
Diluted EPS (Rs)
₹ 17.17
₹ 1.53
₹ 3.36
Net Margins
10.66%
1.29%
2.35%
Net profit for Q4FY22 were up 11-fold at Rs3,008 crore with higher gross refining margins (GRMs) and higher gains from inventory translation on account of the crude rally. MRPL saw a sharp improvement in solvency rations during the quarter. Net margins were 10.66% in Q4FY22 quarter compared to 1.29% in Q4FY21 and also much better than 2.35% in Q3FY22.