Mercator Limited Announced Q2FY19 Financial Results

Deepthi | Myequity news | Date : 13-11-2018 19:30:00 IST

Mercator Limited today announced its Q2 FY19 results. The Company reported an operating income of INR 222 crores and an EBITDA of INR 72 crores.

Performance Summary:

•Consolidated operating income up 8% to INR 222 crores from Q2 FY18
•Strong consolidated EBITDA margins of 32% in Q2 FY19 compared to 20% in Q2 FY18
•Coal - PAT positive INR 11 crores during Q2FY19 & INR 19 crores during H1FY19
•Standalone Shipping business- PAT positive during Q2FY19
•Oil production commenced at Jyoti-I at an initial run rate of ~100-300 Barrels/day

Segmental Review:


•Achieved Strong EBITDA margin of 27% in Q2 FY19- Better than 9% in Q2FY18 and 17% in FY18
•H1FY19 production at 0.96 million tonnes - On track to beat FY 19 budgeted target of 2 Mn MT
•Coal segment continued to contribute the largest share to Q2 FY 19 consolidated revenues and EBITDA


•Achieved strong EBITDA margin of 62% compared to 43% in Q2 FY18
•All Vessels 100% deployed except Vedika Prem which underwent a technical off-hire in early August-18 and consequently went for lay up (i.e. mini dry-dock)


•Dredging revenue for Q2 FY19 up by 10% compared to Q2 FY18
•New contracts of INR 69 crores awarded during H1 FY19
•Orders in hand of INR 155 crores as on 30th September, 2018 out of which orders worth INR 95 crores will be executed during H2 FY19


•The new era of the Company has begun during September-18 whereby Oil production commenced at Jyoti-I
•Mobilization is in process for 2nd Oil well- Jyoti-II

Shalabh Mittal, CEO of Mercator Limited commented: "We are pleased to report an improvement in our Q2 FY19 financials driven by strong rebound in all our business segments. The coal business in Indonesia has performed well in Q2 FY19 as operations ramped up fully. We are excited about the commencement of oil production of our oil & gas business as we approach to tie up capex funding required for ramping up production to 5500-6000 barrels/ day. We plan to further deliver an improved performance in coming quarters by implementing its strategic plan to sell-off low profitability assets to deleverage balance sheet and improved leverage and return ratios."

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