MRPL Reports Negative Financial Performance in Q2 FY25, Interest Costs and Profitability Decline
Mangalore Refinery & Petrochemicals (MRPL), a largecap company in the oil exploration and refineries industry, recently announced its financial results for the quarter ending September 2024. According to the latest report, MRPL has seen a negative financial performance with a score of -18, a decrease from -17 in the previous quarter.
One of the major factors contributing to this decline is the company’s Profit Before Tax (PBT) less Other Income, which has fallen by 212.3% compared to the average PBT of the previous four quarters. This trend is expected to continue in the near term. Similarly, the Profit After Tax (PAT) has also decreased by 204.8% compared to the average PAT of the previous four quarters.
Another concerning aspect is the rising interest cost, which has grown by 32.76% quarter on quarter. This indicates increased borrowings by the company. Additionally, MRPL’s ability to manage interest payments has deteriorated, with the Operating Profit to Interest ratio being the lowest in the last five quarters.
The company’s Operating Profit (PBDIT) has also seen a decline, with the latest quarter recording the lowest figure in the last five quarters. This trend is expected to continue in the near term. The Operating Profit Margin has also decreased, indicating a decline in the company’s efficiency.
Overall, MRPL’s financial performance for the quarter ending September 2024 has been negative, with declining profitability and lower earnings per share for shareholders. Based on this, MarketsMOJO has given a ‘Sell’ call for MRPL’s stock.
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