India's state-run petrochemicals company, Mangalore Refinery & Petrochemicals Limited (MRPL), is all set to supply 2,50,000 tons of diesel to Iran over the next eight months, replacing Reliance Industries, a top company official stated. MRPL is a subsidiary of ONGC and has been one of the favorite madcap stocks for traders for the past few months.

This winter Iran was forced to buy diesel from as far a field as Singapore after Reliance Industries, stopped supplies when its bankers refused to confirm letter of credit raised by Iran's central bank. This happened as a result of increasing Western pressure over Tehran's nuclear programme.

The company had sold its first spot cargo to Iran last month as the Iranian National Oil Co sought new suppliers after India's Reliance halted sales. MRPL runs a 194,000 barrels-per-day coastal refinery in the southern Indian state of Karnataka.

MRPL has posted net profit of Rs 1,272.23 crore in the year ended March 31, 2008 compared to Rs 525.52 crore in the previous year.

The company recommended dividend of 12% or Re. 1.20 per share of Rs 10 each for the fiscal year ended March 31, 2008.