Conference Call with Meghmani Finechem Management and Analysts on Q4FY23 Performance and Outlook. Listen to the full earnings transcript.
Specialty Chemicals Company Meghmani Finechem announced FY23 & Q4FY23 results: FY23: Revenue from operations rose 41% to Rs 2,188 crore as against Rs 1,551 crore in FY22 on account of higher realization compared to last year and volume growth from existing products as well as new products Revenue contribution from derivatives & specialty chemical segment increased to 30% in FY23 vs 25% in FY22 EBITDA grew 35% to Rs 689 crore. Margin stood at 31% in FY23 vs 33% in FY22 on account of the high cost of inventory compared to realization PAT grew 40% to Rs 353 crore as against Rs 253 crore in FY22 and PAT margin stood at 16% (16% in FY22) Net debt/EBITDA stood at 1.3x (1.9x in FY22). Net debt/equity stood at 0.8x (1.3x in FY22) Total debt decreased by Rs 112 crore to Rs 877 crore (Rs 989 crore in FY22) Q4FY23: Volume growth of 15% YoY (13% QoQ) – Led by new product CPVC resin and epichlorohydrin contributed and growth in the volume of caustic soda and hydrogen peroxide Capacity utilization of hydrogen peroxide reached 98% and CMS reached 102% Realization - caustic soda dropped by 23%, chloromethanes dropped by 13% and hydrogen peroxide increased by 1% Revenue grew 13% to Rs 562 crore as compared to Rs 499 crore in Q4FY22 on account of volume growth of 15% Revenue contribution from derivatives & specialty chemical segment increased to 38% in Q4FY23 vs 19% in Q4FY22 PAT stood at Rs 77 crore in Q4FY23 as against Rs 99 crore in Q4FY22 Commenting on the results Maulik Patel, Chairman and Managing Director – MFL, said: “FY 2022-23 was a very exciting year, despite business undergoing through lot of volatility. Realizations were at their peak at the start of the year and dropped sharply by the end of the year. Our strategy to diversify in high-value new products and continuous expansion has brought us volume growth of 15% YoY and 13% QoQ. Revenue contribution from Derivatives & Specialty Chemical segment touched 38% of our revenue in Q4FY23 and our efforts are to further enhance revenue share from this segment. All our future expansion plans are towards this segment.” “Our new expansions that got commissioned in FY23, contributed marginally in FY23, however in the current fiscal (FY24) a sizeable volume growth is expected from these commissioned plants. Further expansions that we are currently working in FY24 will drive growth for FY25 With our focus on continuous expansion and strengthening our integrated complex, we are geared to bring consistent growth to business,” he added. Result PDF