Mangalore Refinery Faces Financial Struggles Amid High Debt and Declining Profits

Mangalore Refinery & Petrochemicals has recently undergone an adjustment in evaluation, reflecting the company's current financial landscape. The latest data indicates that the company has faced significant challenges in its financial performance for the quarter ending June 2025. Notably, the profit before tax (PBT) has reported a substantial decline, reaching Rs -439.62 crore, which marks a drastic change compared to the previous four-quarter average. Similarly, the profit after tax (PAT) has also shown a considerable drop, recorded at Rs -270.66 crore.
The company's debt situation remains a critical concern, with a debt-to-equity ratio averaging 2.46 times, indicating a high level of leverage. This financial strain is further underscored by a return on capital employed (ROCE) of just 4.32%, which is notably low. Despite these challenges, Mangalore Refinery & Petrochemicals has demonstrated some long-term growth potential, with net sales increasing at an annual rate of 14.40% and operating profit at 16.10%. However, the stock has underperformed the market significantly over the past year, with a return of -44.24%, contrasting sharply with the broader market's decline of -4.13%.

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