State-owned petrochemical giant Mangalore Refinery and Petrochemicals Ltd posted its highest quarterly profit in the three month period ended March 31 after it reversed a foreign exchange provision.
Its net profit for the fourth quarter of 2016-17 at Rs 1,942 crore was higher than Rs 1,362 crore in the year-ago period, MRPL chairman Dinesh K Sarraf told reporters.
"The profit was higher due to two major reasons - one because of higher refinery efficiency and two, reversal of foreign exchange provision," he said. The company reversed Rs 1,597 crore it had provisioned to pay Iran for past oil dues.
It happened because MRPL could pay for the dues at the exchange rate prevalent at the time of billing and not at the current level. The dues accumulated for past few years due to banking channels not being available to transmit money to Iran, facing sanctions from the West.