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Meghmani Finechem ‘s Revenue up 91% and PAT grew 184% in Q3FY22

Highlights: YoY comparison

Particular Q3FY21 Q3FY22 Growth   9MFY21 9MFY22 Growth
Revenue 222 422 91% 570 1,052 85%
EBITDA 68 141 107% 181 334 85%
PAT 25 70 184% 68 154 126%

The company has delivered a strong operating and financial performance in line with its commitment to growth. The key performance highlights are:

OPERATIONAL HIGHLIGHTS:

  • Overall plant utilization is at 86% for 9MFY22 which is up by 8% on a YoY basis
  • H2O2 production capacity increased by 190% for 9MFY22 on YoY, plant capacity ramped up to 76%
  • In Q3FY22, Caustic Soda ECU realisation up by 145% YoY; Caustic Potash up by 60% on a YoY basis
  • In Q3FY22, CMS sales realisation up by 106% on a YoY basis; Hydrogen Peroxide up by 25% on a YoY basis

9MFY22 FINANCIAL HIGHLIGHTS:

  • Revenue up by 85% to ₹ 1052 Cr on YoY, backed by an increase in volume, higher utilization and higher realisation for all the products
  • EBITDA increased by 85% to ₹ 334 Cr on YoY; margins maintained at 32% despite a surge in raw material prices
  • ROCE improved to 26% as on 9MFY22 due to higher profitability backed by improved realization in all products and contribution from new capacities of Hydrogen Peroxide and Caustic Soda

Q3FY22 FINANCIAL HIGHLIGHTS:

  • Revenue up by 91% to ₹ 422 Cr backed by an increase in revenue of Chlor-Alkali and Derivatives by 104% and 59% respectively
  • EBITDA increased by 107% to ₹ 141 Cr and EBITDA margin was up by 260 bps to 33.5%, despite high inflationary pressure on raw materials
  • PAT increased by 184% to ₹ 70 Cr and PAT margin was up by 540 bps to 16.5%

 STRATEGIC UPDATE:

o   Crisil upgraded credit rating from A+/Positive to AA-/Stable

o   Expansion projects on track for completion as per schedule: ECH – 90%, CPVC Resin – 80% and Caustic Soda – 80%

o   In 9MFY22, the Company spent ₹ 365 Cr for expansion of all 3 projects

o   We are expanding into Chlorotoluene & its value chain; establishing the R&D facility

Commenting on the results Mr Maulik Patel; Chairman and Managing Director – MFL said: We are glad to report a good performance during the quarter. We have achieved the highest ever topline for 9 months of ₹ 1,052 Cr. The commissioning and optimal utilisation of CMS & H2O2 drove our revenue & profit growth. The investments undertaken in the last couple of years for the diversification of products continue to drive growth and increase our competitiveness.

The forward & backward integration expansion plan covering ECH, CPVC, Caustic soda and Captive power is progressing as per plan and will be commissioned as per schedule. We are simultaneously ensuring a sound financial, healthy cash generation and strong liquidity to ensure that we continue to meet all our obligations and commitments timely.

Further in line for continuous growth we have announced our expansion in Chlorotoluene & its value chain and setting up an R&D facility, this will help to further strengthen our fully integrated complex. We continue to move forward in our strategic direction of scalability, strengthening integration & achieving the lowest cost of operations.

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