Meghmani Organics Limited earnings and sales dropped during first quarter of the current fiscal year due to lower market demand casued by Covid-19 pandemic.

 

Company's net revenue dropped by 30.55% yoy and sales stood at Rs 427.98 crore as against Rs 616.2 crore in last year.

 

The consolidated net profit also fell by 30.83% yoy and stood at Rs 46.81 crore as compared to Q1FY20, when it had reported Rs 77.8 crore. The net profit margin in Q1FY21 came in at 10.94% which declined by 1.69% yoy. The net profit margin for Q1FY20 was at 12.63%.

 

EBITDA stood at Rs 96.4 crore in Q1FY21, which decreased by 28.65% yoy. For Q1FY20, it had posted EBITDA of Rs 135.1 crore. EBITDA margin as of Q1FY21 was at 22.52% which rose  by 0.6% yoy against the same quarter, the previous year.

 

The COVID-19 pandemic has disrupted various business operatians due ta lockdown and other emergency measures imposed by the governments. The operations of the group were impacted, due to shutdown of plants and offices following nationwide lockdown. 

 

Recently, one of its subsidiary, Meghmani Finechem Limited completed installation of an integrated Hydrogen Peroxide plant in existing Chloralkali and Derivative Complex at Dahej at a total cost of Rs.180 crore.The plant will cater various industries like Textile Bleaching, Paper & Pulp Bleaching, Water and Effluent treatment, Non - Edible Oil Refining, Chemical Synthesis, Sugar Bleaching and Metallurgy industry.