HPCL-MRPL merger on the cards but may not happen immediately, MD M Venkatesh tells Anil Singhvi

MRPL has shown a strong performance in Q2FY21 and the question is whether the company is expected to repeat the performance going forward. In an exclusive chat with Zee Business Managing Editor Anil Singhvi, the Mangalore Refinery and Petrochemicals Limited (MRPL) Managing Director (MD) M. Venkatesh said that the robust results are on the back of inventory gains in Q2FY21 against an inventory loss in Q1FY21. The company has posted a 9 per cent profit against a loss of Rs 754 cr. 

The margins which were 13 per cent on the negative side are 5 per cent up. Operating Profits stand at Rs 334 cr which was a earlier a loss of Rs 594 cr. These are the based-on quarter-on-quarter (QoQ) performance, he said.

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Venkatesh said that the prices in Q2 recovered along with the demand situation. The demand for petrol has crossed the pre-Covid 19 levels. The demand for diesel is growing sequentially and the company expects the situation to improve from here, he added.    

The MD said that the company will focus on exports only when its domestic demand is fulfilled. He was responding to a question regarding revival of exports business which has seen a 71 per cent year-on-year (YoY) decline. 

The company is targeting domestic demand in a major way. Venkatesh further said that the Group company has already tied-up with HPCL. 

He expected prices in the domestic market to remain healthy in tandem with the crude prices that are likely to go up, he said. 

On talks around the merger of HPCL and MRPL, the MD said that a decision that the apex governing body on ONGC would take after the merger of MRPL and OMPL (ONGC Mangalore Petrochemicals Limited) is completed. He said that it was on the cards but would not happen immediately.   

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In the post-Covid scenario, the export market is not very reliable, the MRPL MD said.