Meghmani Finechem Limited (MFL), India’s leading integrated chemical manufacturer, yesterday announced its financial results for the quarter ended June 30, 2023. The company posted revenue of Rs.  455 crore as against Rs. 533 crore in Q1FY23. PAT for the quarter ended June 30, 2023 was at Rs. 32 crore as compared to Rs. 108 crore  in Q1FY23.

Commenting on the results, Maulik Patel, Chairman and Managing Director, MFL said: “FY2023-24 started with a quarter that witnessed global level slowdown and inventory destocking, impacting the chemical industry both at demand level and also at realization level. MFL too got impacted during the quarter gone by, on account of drop in realizations. However, MFL achieved volume growth of 11% YoY in Q1FY24; this volume growth is in line with our expansion plans resulting in volume coming from CPVC Resin, Epichlorohydrin and Hydrogen Peroxide. Revenue contribution from Derivatives and Specialty Chemical stood at 38% compared to 21% for similar period last year. We estimate this volume growth story will continue further as these new projects will further contribute in FY24.

“Considering our long term vision, we are on schedule for our expansions of CPVC Resin of 45,000 TPA and Chlorotoluene value chain, this will drive volume growth in FY25. Our R&D center is almost ready; hence we are ready with another strong pillar for our future growth in the Specialty Chemical segment.

We believe that the current scenario is a phase that will pass and the long term story remains intact. Hence, we are preparing ourselves for long term growth and we are moving in that direction. Our board has taken the initiative to rename our company to Epigral. This activity is proposed to strengthen our corporate brand in line with our commitment to transform the company as a global multi-product chemical conglomerate and enhance our reputation as an integral partner for esteemed clients and our stakeholders.”

Q1FY24 Operational Highlights:

o YoY volume grew by 11% majorly on account of Derivatives & Specialty Chemical segment (CPVC, ECH and Hydrogen Peroxide).

o Capacity utilization of Hydrogen Peroxide reached 104% and CMS reached 103%

o Realizations of all the products are down in Q1FY24 on account of slowdown and destocking at global level

Q1FY24 Financial Highlights:

o Revenue contribution from Derivatives & Specialty Chemical segment increased to 38% in Q1FY24 vs 21% in Q1FY23

o EBITDA Margin stood at 21% on account of high cost of inventory compared to drop in realizations.

o Net Debt/EBIDTA stood at 1.5x (1.6x in Q1FY23).

Strategic Update for Q1FY24:

o Meghmani Finechem board proposed to rename the company to Epigral. The proposal is approved by shareholders and by Ministry of Corporate Affairs

o This renaming is undertaken to strengthen our corporate brand in line with our commitment to transform the company as a global multi-product chemical conglomerate and enhance our reputation as an integral partner for esteemed clients and our stakeholders

o MFL commissioned 18.34 MW Wind Solar Hybrid Power Plant in Q1FY24

o Expansion of CPVC Resin capacity of 45,000 TPA is on schedule and expected to get commission by Q4FY24

o Expansion of Chlorotoluene & its value chain is on schedule and expected to get commission by Q4FY24

o R&D centre near Ahmedabad, is almost ready and will get commission in Q2FY24