India Infoline Result Update Mangalore Refinery and Petrochemicals Ltd (Q1 FY06)

August 03, 2005

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Net sales surge on back of improved realizations and jump in export turnover Other income more than doubles on back of exchange fluctuation gains and write backs of excess provisions Repayment of debt leads to fall in interest cost Financial Highlights
Period (Rs mn) Gross Sales Excise Sales Expenditure Operating profit Other income Interest Depreciation PBT Tax PAT OPM (%) Equity EPS (Rs)Annualized P/E (x)53.2 06/05 (3) 66,055 (10,310) 55,745 (51,208) 4,537 394 (484) (931) 3,516 (1,359) 2,158 8.1 17,526 4.9 10.8 06/04 (3) 46,580 (4,196) 42,384 (39,163) 3,221 161 (670) (942) 1,771 (652) 1,119 7.6 17,526 2.6 Growth (%) 41.8 145.7 31.5 30.8 40.9 144.4 (27.8) (1.1) 98.6 108.4 92.8 0.5 03/05 (12) 206,926 (21,842) 185,083 (166,261) 18,822 1,864 (2,296) (3,781) 14,609 (5,811) 8,798 10.2 17,526 5.0 10.6 03/04 (12) 126,122 (12,216) 113,906 (106,726) 7,181 6,080 (3,734) (3,782) 5,745 (1,151) 4,594 6.3 17,526 2.6 Growth (%) 64.1 78.8 62.5 55.8 162.1 (69.3) (38.5) (0.0) 154.3 404.9 91.5 3.9

Mangalore Refinery and Petrochemicals Ltd (MRPL) reported 31.5% yoy growth in net sales to Rs55.7bn in Q1 FY06 on back of improved realizations, surge in exports and increased production. Operating at 121% capacity utilization, the refinery clocked a throughput of 2.889MMT in Q1 FY06, up by 2%. Export turnover more than doubled to Rs16.6bn in Q1 FY06. the g rowth would have been higher had it not been for non-revision of monthly refinery transfer price of LPG and SKO since April 2005. During Q1 FY06, operating profit for the company increased by 40.9% yoy to Rs4.5bn and OPM swelled by 50bps to 8.1%. The increase was primarily on account of 40bps yoy fall in overheads as a percentage of sales. The decline in overheads has been as a result of improvement in operational efficiency of the refinery since the take over by ONGC.

India Infoline Ltd, 75 Nirlon Complex, Off W. E. Highway, Goregaon(E). Mumbai- 63. Tel: 5648 9000 Fax: 26850451

IT'S ALL ABOUT MONEY, HONEY!

India Infoline Result Update Mangalore Refinery and Petrochemicals Ltd (Q1 FY06)
August 03, 2005
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Cost Analysis
Period 06/05 (3) Raw Material Staff Cost Other expenditure Total Expenditure 88.5 0.2 3.2 91.9 06/04 (3) 88.6 0.2 3.6 92.4 (0.1) 0.0 (0.4) (0.5) Inc/Dec 03/05 (12) 86.8 0.3 2.8 89.8 03/04 (12) 90.0 0.2 3.5 93.7 (3.2) 0.0 (0.7) (3.9) Inc/Dec

Other income for the company jumped by 144.4% yoy to Rs394mn in Q1 FY06. The surge was driven by exchange fluctuation gain of Rs74mn and Rs212mn of write backs of excess provision towards doubtful debts. Repayment of debt has led to interest cost declining by 27.8% yoy to Rs484mn in Q1 FY06. Robust operational performance backed by decline in interest expenditure and surge in other income translated into near doubling of PAT to Rs2bn in Q1 FY06. Outlook With assured supplies of crude from ONGC, robust demand for petroleum products and capacity expansion plans on the cards, the company is well poised to continue its revenue and profitability growth in the near term. Key drivers for future growth: MRPL signed a term contract on April 9, 2005 with Ceylon Petroleum Corporation, Sri Lanka for export of approximately 320,000 MT of refined products (Motor Spirit, High Speed Diesel and Aviation Turbine Fuel) against an US$150mn Line of Credit extended by the EXIM Bank under Government-to-Government framework. MRPL acquired 18 sites on National/State Highways in Karnataka from the Karnataka State Tourism Corporation on long-term lease for development of Retail Network. MRPL has initiated Detailed Feasibility Study for augmenting Refining capacity to 15 MMTPA. Feasibility studies for an Aromatics Complex and an Olefins Complex have been taken up. A proposal to build additional 15/18 MMTPA refining capacity is under consideration. ONGC-MRPL has received approval from the Ministry of Petroleum & Natural Gas to develop an exportoriented Refinery in Kakinada Special Economic Zone. The Ministry has been requested to nominate ONGC-MRPL as the buyer for the crude to be produced by CAIRNONGC consortium in Rajasthan; given this nomination, ONGCMRPL proposes to develop a well-head refinery in consortium with CAIRN.

India Infoline Ltd, 75 Nirlon Complex, Off W. E. Highway, Goregaon(E). Mumbai- 63. Tel: 5648 9000 Fax: 26850451

IT'S ALL ABOUT MONEY, HONEY!

India Infoline Result Update Mangalore Refinery and Petrochemicals Ltd (Q1 FY06)
August 03, 2005
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Published in August 2005. India Infoline Ltd 2005-6. This report is for information purposes only and does not construe to be any investment, legal or taxation advice. It is not intended as an offer or solicitation for the purchase and sale of any financial instrument. Any action taken by you on the basis of the information contained herein is your responsibility alone and India Infoline Ltd (hereinafter referred as IIL) and its subsidiaries or its employees or directors, associates will not be liable in any manner for the consequences of such action taken by you. We have exercised due diligence in checking the correctness and authenticity of the information contained herein, but do not represent that it is accurate or complete. IIL or any of its subsidiaries or associates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this publication. The recipients of this report should rely on their own investigations. IIL and/or its subsidiaries and/or directors, employees or associates may have interests or positions, financial or otherwise in the securities mentioned in this report. .

India Infoline Ltd, 75 Nirlon Complex, Off W. E. Highway, Goregaon(E). Mumbai- 63. Tel: 5648 9000 Fax: 26850451

IT'S ALL ABOUT MONEY, HONEY!