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