InvestorQ : Why has Mangalore Refineries reported a big loss? I am holding shares in the company, what should I do?
Dia Deshpande made post

Why has Mangalore Refineries reported a big loss? I am holding shares in the company, what should I do?

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Ria Jain answered.
3 years ago
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For the quarter ended June 2019, MRPL reported a net loss of Rs.450 crore compared to a profit of Rs.237 crore in the same quarter last year. The sharp fall in profits was driven by a 34% fall in sales revenues for the company to Rs.11,176 crore in the June quarter. During the quarter, the company saw lower refining throughput and also was hit by lower oil prices which impacted its inventory pricing.

You must be aware that post the acquisition of majority stake by ONGC in HPCL, MRPL will be merged into HPCL. That is because nearly 90% of the stake in MRPL is held between ONGC and HPCL. Currently, you must be prepared for volatility in all oil companies and margins could come down sharply as oil prices remain under pressure due to the global slowdown fears. It is best to exit the stock.

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