MRPL reports strong Q2 FY25 results, eyes retail network expansion

MRPL reported a throughput of 4.4 MMT of crude and other feedstocks for Q2 FY25, a significant recovery from Q1. This led to a revenue from operations of INR 25,953 crores, with an EBITDA of INR 1,565 crores and a PAT of INR 639 crores. The company noted better global refining margins due to supply disruptions and normal demand growth, expecting Q3 crude processing to exceed 4.43 MMT.

The company is actively expanding its retail outlet network, with 185 operational outlets in Karnataka, Kerala, and Tamil Nadu. The target is to reach 250 by year-end, with plans to add 100-130 outlets annually. MRPL is also progressing on sustainable aviation fuel (SAF) projects, aiming for a production rate of 20 kilolitres per day by January 2027 to meet government mandates.

Regarding crude sourcing, Russian barrels constitute 30-40% of the crude basket, sourced on a spot basis. Logistic costs from the US are estimated at $6 to $7 per barrel higher than from the Middle East. The company maintains a normal CAPEX plan of typically INR 1,500 crores, with potential increases for Phase 4 expansion.