Agrochemicals firm Meghmani Organics announced Q2FY23 results: Q2FY23 & H1FY23: Meghmani Organics Ltd. (MOL) revenues grew by 20% YoY to Rs. 6,552 million in Q2FY23 led by better realization from both Pigment and Agrochemical businesses despite volatility in commodity prices globally. The outlook for both segments remains positive. The Company continues to delight its esteemed clients with a diversified product portfolio and quality products. During the quarter, the Company’s Gross Profit grew by 10% YoY to Rs. 2,568 million as compared to Rs. 2,345 million. EBITDA grew by 9% YoY to Rs. 848 million in Q2 FY23 as compared to Rs. 777 million in Q2 FY22. PAT grew by 13% YoY to Rs. 734 million during the quarter. The Company’s PAT margin stood at 11.2% in Q2 FY23. On the Balance Sheet front, the Company’s Cash balance & short term investments stood at Rs.593 million as on 30th September 2022. The Debt-Equity ratio stood at 0.39 during H1 FY23. Meghmani Organics return ratios i.e. ROCE and ROE stand robust at 18.0% and 24.7%, respectively as on 30th September 2022. The Company’s resilient performance amidst a challenging global macro-environment demonstrates the management’s acumen towards risk management and financial prudence. MOL’s capex plans are progressing well as planned. The Company continues to be optimistic about the overall growth with a huge untapped opportunity market in India led by the Government’s Atmanirbhar Bharat initiatives pushing the Indian Chemical industry towards import substitution and strengthening R&D; capabilities. Additionally, the growing China plus one strategy amongst global nations has put the Indian Chemical industry in a sweet spot. MOL is well placed to benefit from favourable government policies. The management remains committed for sustainable growth and create long-term value for its esteemed stakeholders. Result PDF
Agrochemicals firm Meghmani Organics Announced Q1FY23 Result : Meghmani Organics Ltd. (MOL) revenue grew by 58% YoY to Rs. 7,831 million in Q1 FY23 aided by higher capacity utilization & better realization from the Agrochemical business. The agrochemical business continues its robust performance. The pigment business has reported moderate performance due to the economic slowdown and price volatility. Overall outlook in both businesses remains positive, and the long-term growth trajectories remains encouraging. During the quarter, the Company’s Gross Profit grew by 58% YoY to Rs. 3,446 million as compared to Rs. 2,182 million in Q1FY22. EBITDA grew by 53% YoY to Rs. 1,341 in Q1 FY23 as compared to Rs. 874 in Q1 FY22. PAT grew by 67% YoY to Rs. 1,139 million. The Company’s PAT margin stood at 15% in Q1FY23. Result PDF
Agrochemicals firm Meghmani Organics declares Q4FY22 result: Meghmani Organics Ltd. (MOL) revenue grew by 77.1% YoY to Rs. 8,134 million in Q4 FY22 aided by higher capacity utilization along with improvement in volume & realization from pigment and agrochemicals business. Global commodities prices witnessed sharp inflation, which kept MOL raw material prices marginally higher. Despite challenges due to raw material price volatility and the global supply chain, the Company’s Gross Profit grew by 84% YoY to Rs. 3,339 million. Gross margin expanded by 164 bps YoY to 41.0%. During Q4 FY22, PAT grew by 202.9% YoY to Rs. 1,070 million and PAT margin stood at 13.2% in Q4FY22 against 7.7% in Q4 FY21. For FY 22, the Company’s revenue grew by 53.6% to Rs. 24940 million. PAT is up by 66.5% to Rs. 3080 million against Rs.1850 million in FY 21. On the Balance Sheet front, the Company’s Debt-Equity ratio stood at 0.34 as of 31st March 2022. Meghmani Organics return ratios i.e. ROCE and ROE (annualized) stands robust at 19.0% and 23.6%, respectively as of 31st March 2022. During Q3 FY22, Meghmani Organics acquired Kilburn Chemicals Ltd. thereby fast-tracking its foray into new pigment-Titanium Dioxide (TiO2 ). The aforesaid acquisition was funded from the Company’s internal accruals. The plant is located at Dahej, Gujarat and its existing Titanium Dioxide (TiO2 ) manufacturing capacity is pegged at 16,500 metric tons per annum (MTPA). MOL anticipates doubling its Titanium Dioxide (TiO2 ) capacity to 33,000 MTPA by Q3 FY24. Phase 1 with 16500 MTPA capacity will be operationalise by Q3 FY23. The aforesaid plant is expected to contribute ~Rs. 6,500-7,000 million to MOL’s topline on a full financial year basis at normal capacity utilisation. India’s chemical industry is at an inflection point thanks to the multinational companies opting ‘China plus one’ strategy. Meghmani Organics foresees huge untapped growth potential for India’s chemical industry and strives to bank on the growth opportunities by remaining committed to maximize its return on investment and create value for its esteemed stakeholders. Result PDF
Conference Call with Meghmani Organics Management and Analysts on Q3FY22 Performance and Outlook. Listen to the full earnings transcript.
Agrochemicals company Meghmani Organics declares Q3FY22 result: Despite challenging business environment, Meghmani Organics Ltd. (MOL) revenue grew by 43.7% YoY to Rs. 6,392 million in Q3 FY22 aided by higher realisation from Pigments along with improvement in volume & higher realisation from Agrochemicals business During the quarter, the Company’s Gross Profit grew by 24.8 % YoY to Rs. 2,535 million. As an industry wide phenomenon, MOL too faced the challenge in respect to hardening of raw material prices. Due to sudden and sharp rise of raw material prices, MOL faced challenge in terms of fully passing on to consumers. The Gross margin contracted by 600 bps YoY to 39.7% in Q3FY22. During Q3 FY22, PAT grew by 22.0% YoY to Rs. 679 million. The Company’s PAT margin stood at 10.6% in Q3FY22. On the Balance Sheet front, the Company’s Cash & Cash Equivalents stood at Rs. 432 million as on 31st December 2021. Debt-Equity ratio stood at 0.36 as on 31st December 2021. Meghmani Organics return ratios i.e. ROCE and ROE (annualized) stands robust at 16.3% and 21.4%, respectively as on 31th December 2021. During Q3 FY22, Meghmani Organics acquired Kilburn Chemicals Ltd. for Rs. 1,320 million, thereby fast-tracking its foray into Titanium Dioxide (TiO2). The aforesaid acquisition was funded from the Company’s internal accruals. The plant is located at Dahej, Gujarat and its existing Titanium Dioxide (TiO2) manufacturing capacity is pegged at 16,500 metric tons per annum (MTPA). MOL anticipates doubling its Titanium Dioxide (TiO2) capacity to 33,000 MTPA by Q3 FY24 by incurring total capex of Rs. 6,000 million funded by an appropriate mix of internal accruals and debt. The aforesaid plant is expected to contribute ~Rs. 7,000-7,500 million to MOL’s topline on a full financial year basis at normal capacity utilisation. India’s chemical industry is at an inflection point thanks to the multinational companies opting ‘China plus one’ strategy. Meghmani Organics foresees huge untapped growth potential for India’s chemical industry and strives to bank on the growth opportunities by remaining committed to maximize its return on investment and create value for its esteemed stakeholders. Result PDF
Conference Call with Meghmani Organics (MOL) Management and Analysts on its new business entry. Listen to the full transcript.
Highlights Despite challenging business environment, Meghmani Organics Ltd. revenue grew by 28.4% YoY to Rs. 5,457 million in Q2 FY22 aided by strong growth from both the Pigments and Agrochemicals business. During the quarter, the Company’s Gross Profit grew by 11.1% YoY to Rs. 2,345 million. The Gross margin contracted by 667 bps YoY to 43.0% in Q2FY22 due to higher raw materials cost and logistics cost. Meghmani Organics EBITDA declined by 23.1% YoY to Rs. 777 million. The EBITDA margin contracted by 952 bps YoY owing to an increase in other expenses (392 bps YoY) impacted by higher logistics cost and rise in the cost of raw materials (667 bps YoY). However, a decline in employee expenses (107 bps YoY) arrested further contraction in EBITDA margin during the quarter. During Q2 FY22, PAT stood flat at Rs. 649 million. The Company’s other income grew (11.6x YoY to Rs. 150 million) due to Forex MTM gain, Dividend income on RPS and exceptional gains of Rs. 61 million during the quarter. The Company’s PAT margin stood at 11.9% in Q2FY22. On the Balance Sheet front, the Company’s Cash & liquid investments stood at Rs. 2,128 million as on 30th September 2021. Debt-Equity ratio stood at 0.33 as on 30th September 2021. Meghmani Organics return ratios i.e. ROCE and ROE (annualized) stands robust at 17.4% and 21.9%, respectively as on 30th September 2021. India’s chemical industry is at an inflection point thanks to the multinational companies opting ‘China plus one’ strategy. Meghmani Organics foresees huge untapped growth potential for India’s chemical industry and strives to bank on the growth opportunities by remaining committed to maximize its return on investment and create value for its esteemed stakeholders. Result PDF