Meghmani Finechem Limited (MFL), India’s leading integrated chemical manufacturer, registered a strong operating and financial performance for the quarter and year ended March 31st, 2023. MFL posted 40% jump in PAT at Rs. 353 crore for FY 23 as against Rs. 253 crore in FY22. Revenue for the year ended March 31, 2023 rose by 41% to Rs. 2,188 crore as compared to Rs. 1,551 crore in FY22. EBITDA grew 35% to Rs. 689 crore. Margin stood at 31% (33% FY22) on account of high cost of inventory compared to realization.

Commenting on the results, Maulik Patel; Chairman and Managing Director, MFL said: “FY 2022-23 was a very exciting year, despite business undergoing through lot of volatility, realizations were at their peak at the start of the year and dropped sharply by the end of the year. Our strategy to diversify in high value new products and continuous expansion has brought us volume growth of 15% YoY and 13% QoQ. Revenue contribution from Derivatives & Specialty Chemical segment touched 38% of our revenue in Q4FY23 and our efforts are to further enhance revenue share from this segment. All our future expansion plans are towards this segment.”

“Our new expansions that got commissioned in FY23, contributed marginally in FY23, however in the current fiscal (FY24) a sizeable volume growth is expected from these commissioned plants. Further expansions that we are currently working in FY24 will drive growth for FY25.

With our focus on continuous expansion and strengthening our integrated complex, we are geared to bring consistent growth to business,” Patel added.

The key performance highlights are:

Strategic Update for FY2022-23

* CPVC Resin – Additional capacity of 45,000 TPA, expected to get commission by Q4FY24

* Chlorotoluene & its value chain, expected to get commission by Q4FY24

* R&D centre near Ahmedabad, expected to ready by Q2FY24

* MFL entered in JV to set up 18.34 MW Hybrid Power Plant to meet energy requirement at the plant

* MFL acquired 2,89,844.41 sq. m. land in Dahej (close to current complex) for future growth plans

* In FY23, MFL commissioned Epichlorohydrin on 1st June 2022, CPVC on 18th July 2022 and additional capacity of Caustic Soda on 30th September 2022 which were all completed within their committed timelines and capex limit. These projects contributed volume marginally in FY23 and expected to contribute fully in FY24

* MFL spent Rs. 416 crore on capex in FY23 vs Rs. 456 crore in FY22

* Total debt decreased by Rs. 112 crore to Rs. 877 crore (Rs 989 cocre in FY22)

Q4FY23 Operational Highlights (YoY): 

* Volume growth of 15% YoY (13% QoQ) – Led by new product CPVC Resin and Epichlorohydrin contributed and growth in volume of Casutic Soda and Hydrogen Peroxide

* Capacity utilization of Hydrogen Peroxide reached 98% and CMS reached 102%

* Realization - Caustic Soda dropped by 23%, Chloromethanes dropped by 13% and Hydrogen Peroxide increased by 1%

Q4FY23 Financial Highlights (YoY):

* Revenue grew 13% to Rs. 562 crore as compared to Rs. 499 crore in Q4FY22 on account of volume growth of 15%

* Revenue contribution from Derivatives & Specialty Chemical segment increased to 38% in Q4FY23 vs 19% in Q4FY22

* PAT stood at Rs. 77 crore as against Rs 99 crore in Q4FY22