Conference Call with Meghmani Organics Management and Analysts on Q1FY25 Performance and Outlook. Listen to the full earnings transcript.
Agrochemicals company Meghmani Organics announced Q1FY25 results: Financial Highlights: Revenue from operations remained flat at Rs 411.1 crore for the quarter under review. Meanwhile, EBITDA stood at Rs 14.2 crore in Q1FY25, increasing by 194% YoY and 40% on QoQ basis. Both the segment witnessed healthy volume growth in Q1FY25 which was offset by lower product price realizations across markets impacting profitability during the quarter under review. Crop Protection constitutes ~66% of the overall company’s revenue in Q1FY25. The segment reported Net Revenue and EBITDA of Rs 272.6 crore and Rs 11.3 crore respectively as compared to Rs 300.2 crore and Rs 0.5 crore in corresponding previous year. Pigments constitutes ~34% of the overall company’s revenue in Q1FY25. The segment reported Net Revenue and EBITDA of Rs 138.5 crore and Rs 9.4 crore respectively as compared to Rs 121.4 crore and Rs (8.4) crore in corresponding previous year. Commenting on Q1FY25 performance, Ankit Patel, Chairman & Managing Director said: “For the quarter under review, we witnessed health volume growth in both the segments implying a gradual recovery in demand. However, this was offset by lower product price realizations across markets impacting our profitability. In our Crop Nutrition segment, we are pleased to share that we have successfully launched 8 new products in fertilizers, biofertilizer and biostimulant category, providing a comprehensive, one-stop solution for our farmers to improve the productivity and nutrient use efficiency. Moving ahead in FY25, we are optimistic that in the coming quarters with the momentum in the demand recovery followed by improved pricing will enhance our profitability.” Result PDF
Agrochemicals company Meghmani Organics announced Q4FY24 & FY24 results: Q4FY24 Financial Highlights: Revenue from operations: Rs 399.8 crore EBITDA: Rs 10.1 crore Gradual improvement on QoQ basis FY24 Financial Highlights: Revenue from operations: Rs 1,539.9 crore EBITDA: Rs 9.5 crore Impacted by sluggish demand and lower product price realizations Inventory destocking: ~Rs 70 crore Crop Protection Segment (FY24): Constitutes ~70% of overall revenue Net Revenue: Rs 1,078.9 crore EBITDA: Rs 44.1 crore Impacted by sluggish global demand and high channel inventory High interest rate scenario affecting performance Pigments Segment (FY24): Constitutes ~30% of overall revenue Net Revenue: Rs 461.0 crore EBITDA: Rs (6.6) crore Impacted by price erosion in global pigment industry Demand contraction affecting performance Commenting on Q4 & FY24 performance, Ankit Patel, Chairman & Managing Director said “For the quarter under review, there was a gradual improvement on a QoQ basis however on a full year basis our revenue and profitability were impacted by continued sluggish global demand, lower product price realizations across markets, and inventory destocking. We have recently commissioned our Nano Urea plant and Titanium Dioxide (TiO2)’s co-gen power plant. Moving into FY25, contribution from Nano Urea and TiO2 will complement our existing Crop Protection and Pigment businesses in which we see gradual recovery in demand followed by improved pricing from H2FY25. We also plan to introduce 4 to 5 products in fertilizers, biofertilizer and biostimulant category in our Crop Nutrition basket, providing a comprehensive, one-stop solution for our farmers to improve the productivity and nutrient use efficiency. 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 sustainable long-term position.” Result PDF
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.