Conference Call with Meghmani Organics Management and Analysts on Q3FY24 Performance and Outlook. Listen to the full earnings transcript.
Agrochemicals company Meghmani Organics announced Q3FY24 & 9MFY24 results: Financial Highlights Q3FY23 vs Q3FY24: The revenue from operations decreased from Rs 553.8 crore in Q3FY23 to Rs 344.5 crore in Q3FY24. EBITDA dropped from a positive Rs 61.4 crore in Q3FY23 to a negative Rs (0.4) crore in Q3FY24. The EBITDA Margin shrank from 11.1% in Q3FY23 to (0.1%) in Q3FY24. Net Profit decreased from a positive Rs 17.9 crore in Q3FY23 to a negative Rs (27.2) crore in Q3FY24. Net Profit Margin declined from 3.2% in Q3FY23 to (7.9%) in Q3FY24. 9MFY23 vs 9MFY24: Revenue also showed a contraction from Rs 1,992.1 crore in 9MFY23 to Rs 1,140.0 crore in 9MFY24. EBITDA also recorded a negative balance of Rs (0.7) crore in 9MFY24 in contrast to the positive Rs 280.3 crore in 9MFY23. Net Profit saw a decline from Rs 205.3 crore in 9MFY23 to Rs (56.2) crore in 9MFY24. Segment Performance in Q3FY24: Crop Protection: Contributed approximately 69% to overall revenue, with Rs 239 crore in Net Revenue and Rs 5.1 crore in EBITDA. Pigments: Accounted for about 31% of the company's revenue, with Rs 105 crore in Net Revenue and Rs 0.9 crore in EBITDA. Ankit Patel, Chairman & Managing Director, said: "For the quarter under review, we continued to witness sluggish global demand coupled with lower product price realizations across markets impacting our revenue and profitability. As management we have proactively undertaken cost control measures, clearing the high-priced inventory, optimizing the working capital utilization, and enhancing the cash conversion cycle to maintain our balance sheet strength. We anticipate that the overall scenario will start normalizing from the next financial year. Nano Urea and Titanium Dioxide would also start contributing meaningfully from FY25 which would help us strike a balance between export and domestic business. To conclude, once again I would like to reiterate that our long-term growth prospects remain intact, given our expanded infrastructure, plant compatibility, wider product range, and geographical reach which will help Meghmani Organics to command a sustainable long-term position." Result PDF
Agrochemicals company Meghmani Organics announced Q2FY24 & H1FY24 results: Q2FY24 vs Q2FY23: Revenue from Operations decreased from 655.2 to 374.0 (a change of -43.1%) EBITDA decreased from 84.8 to 14.8 (a change of -82.5%) EBITDA Margin decreased from 12.9% to 4.0% (a change of -8.9%) Net Profit decreased from 73.4 to -3.6 (a change of -100.0%) Net Profit Margin decreased from 11.2% to -1.0% (a change of -12.2%) H1FY24 vs H1FY23: Revenue from Operations decreased from 1,438.3 to 795.5 (a change of -44.6%) EBITDA decreased from 218.9 to -0.3 (a change of -100.1%) EBITDA Margin decreased from 15.2% to -0.04% (a change of -15.24%) Net Profit decreased from 187.4 to -28.9 (a change of -115.4%) Net Profit Margin decreased from 13.0% to -3.6% (a change of -16.6%) Commenting on Q2FY24 performance, Ankit Patel, Chairman & Managing Director said, “The industry continues to be under pressure due to sharp price erosion, high channel inventory and subdued global demand. Demand from developed economies is also impacted due to high inflation and emerging geopolitical tensions. As we navigate through this tough time, the management has proactively undertaken cost control measures, clearing the high-priced inventory, optimizing the working capital utilisation, and enhancing the cash conversion cycle to maintain our balance sheet strength. On the Capex front, we are progressing in a calibrated manner and we are optimistic that Nano Urea and Titanium Dioxide would start contributing meaningfully from the next financial year. This would help us strike a balance between export and domestic business. Lastly, I would like to reiterate that our long-term growth prospects remain intact, given our expanded infrastructure, plant compatibility, wider product range, and geographical reach which will help Meghmani Organics to command a sustainable long-term position.” Result PDF
Conference Call with Meghmani Organics Management and Analysts on Q1FY24 Performance and Outlook. Listen to the full earnings transcript.
Agrochemicals company Meghmani Organics announced Q1FY24 results: During Q1FY24, revenues from operations were at Rs 422 crore; impacted by a prolonged challenging global macro-economic environment, demand slowdown, and decline in prices across the industry. During Q1FY24, EBITDA was at Rs (15) crore, impacted due to higher cost of operation due to lower capacity utilization coupled with destocking of inventory. Agrochemicals constitute ~71% of the overall company’s revenue during Q1FY24. Pigments constitute ~29% of the overall company’s revenue in Q1FY24. Net Profit of Rs (25) crore in Q1FY24 compared to Rs 114 crore in Q1FY23. EPS of Rs (0.99) in Q1FY24 compared to Rs 4.48 in Q1FY23. Commenting on Q1FY24 performance, Ankit Patel, Chairman & Managing Director said, “In testing times like these, our priority as the management of the company is to be able to withstand this downturn, overcome these challenging times and come out of it with enhanced wisdom and strength. During this time, we have adopted certain strategies such as cost rationalization wherein the management has proactively undertaken cost control measures, clearing the high-priced inventory, optimizing the working capital utilization, and enhancing the cash conversion cycle to maintain our balance sheet strength. Lastly, I would like to reiterate that our long-term goals remain intact. Some of the virtues such as our expanded infrastructure, plant compatibility, wider product range, and geographical reach will help Meghmani Organics to command a sustainable long-term position.” Result PDF
Conference Call with Meghmani Organics Management and Analysts on Q4FY23 Performance and Outlook. Listen to the full earnings transcript.
Agrochemicals company Meghmani Organics announced Q4FY23 & FY23 results: Q4FY23: During Q4FY23, the company revenues stood at Rs 565 crore EBITDA stood at Rs 84 crore during the quarter and EBITDA margin was at 14.8% in Q4FY23 Ranked as #1 Fortune Next 500 Company by Fortune India FY23: During FY23, the company revenues stood at Rs 2,557 crore EBITDA stood at Rs 364 crore during the year, the EBITDA margin was at 14.2% in FY23 PAT stood at Rs 250 crore in FY23 Agrochemicals constitutes ~76% of the overall company’s revenue during FY23 Pigments constitutes ~24% of the overall company’s revenue Declared final dividend of 140% (INR 1.40/equity share) for FY23 Commenting on FY23 performance, Ankit Patel, CEO, said, “It gives me immense pleasure to share that Meghmani Organics was ranked #1 Fortune Next 500 company by Fortune India. We are grateful to all our stakeholders for their continued support of our capabilities and vision for over three decades. Despite challenging global macro-environment and inflationary pressure, Meghmani Organics' topline grew by 2.5% YoY to Rs 2,557 crore in FY23. We are adding meaningful capacities and capabilities in both pigment and agrochemical businesses gearing towards future growth. Phase I of the TIO2 plant (16,500 MTPA) is getting stabilised and it will add a meaningful contribution in FY24. The Company aims to commission its captive power plant in Q3 FY24 and double its TIO2 plant capacity to 33,000 MTPA in Phase II. I am happy to share that our agrochemicals vertical has bagged the prestigious Responsible Care® certification in FY23 reflecting the Company’s continuous improvement in safe chemicals management. It propels us to achieve excellence in Environmental, Health, Safety and Security (EHS&S;) performance in the coming years. The MPP is getting stabilised and is expected to make a notable contribution in FY24. The capex towards MNCL for manufacturing Nano Urea (Liquid) fertilizer is progressing as planned and commercial production is expected in Q4FY24. MNCL eyes annualized revenue of Rs 1,000 crore from the Nano Urea plant. The long-term supply contract for 5 years with a reputed multinational customer for agro products will add Rs 160 crore annually to the top line. Meghmani Organics continues to retain and attract new clients with its diversified product portfolio and quality products in both pigments and agrochemicals business. We are confident in achieving sustainable long-term growth for the esteemed stakeholders aided by our robust business model, financial prudence, and strong balance sheet.” Result PDF
Conference Call with Meghmani Organics Management and Analysts on Q3FY23 Performance and Outlook. Listen to the full earnings transcript.
Agrochemicals firm Meghmani Organics announced Q3FY23 results: Q3FY23: The company could achieve a revenue of Rs 554 crore and Rs 1,992 crore for 9MFY23 EBITDA margins achieved 11% for Q3 and 14% for 9MFY23. The dip in performance in pigments was offset by agrochemicals. Agrochemicals: constitutes 75% of the overall company’s revenue. During this quarter, the company was able to maintain EBITDA margins of 19.2% (against 17.5% in Q3FY22) despite adverse global macro challenges. The company is well positioned to benefit from ‘China plus one’ strategy of global players coupled with capex plans eyeing on new molecules in agrochemicals. Pigments: constitute 25% of the overall company’s revenue. Currently pigment is witnessing slow export demand and contraction in prices due to challenging global macro environment. During the quarter pigment performance has been adversely impacted due to liquidation of high-cost inventory. We expect the recovery in the demand in the pigment division in the next few quarters. Finance Cost: MTM gain of Rs 73 crore on receivables has been shown as other income. MTM loss on foreign currency borrowing Rs 38 crore has been accounted as finance cost. Out of Rs 38 crore MTM loss, Rs 35 crore is unrealised MTM loss. During the Q3FY23, there is net foreign currency loss of Rs 19 crore while for 9M period there is a net foreign currency gain of Rs 35 crore. Borrowing cost net of foreign currency impact is Rs 5.4 crore for Q3 and Rs 11.7 crore for 9MFY23 Commenting on this quarter’s performance, Mr. Ankit Patel, CEO said “the commercial production of the agrochemicals new Multi Product Plant was commenced in Q3 FY23 and plant is getting stabilised. It will add meaningful contribution from the next financial year. During the quarter, the company has entered into long term supply contract for 5 years with reputed Multinational Customer for its Agro Products. Total value of the contract is approximately Rs. 800 Cr. Also, the company shall foray into Nano Urea (Liquid) fertilizer through our wholly owned subsidiary Meghmani Crop Nutrition Ltd (MCNL) for which the company will incur a capex of Rs 150 crores for setting up the plant in Gujarat with annual capacity of 5 crore bottles (~500 ml) per year. The plant will commence commercial production from Q4FY24. MNCL aims to achieve a topline of INR 1,000 crores on an annualized basis. One of the essential developments is that on the pigment side, the Phase 1 of the Titanium Dioxide plant with 16,500 tons capacity was commissioned on 18th January 2023. The team is working towards stabilizing the plant and the Phase 2 capex plan of doubling TiO2 capacity to 33,000 tons p.a. along with captive power plant is expected to be completed in Q3 FY24 at capex of Rs 375 crore”. Result PDF