Meghmani Finechem hits record high after robust Q4 earnings

Meghmani Finechem (MFL) rallied 10.78% to Rs 1433.05 after the company reported a 202% jump in consolidated net profit to Rs 99 crore on a 93% rise in revenue from operations to Rs 499 crore in Q4 FY22 over Q4 FY21.

Shares of Meghmani Finechem have rallied 25.2% in two trading sessions from its previous closing low of Rs 1144 posted on 22 April 2022. The counter hit a record high of Rs 1,469.55 in intraday trade today. The result was announced during market hours yesterday, 25 April 2022.

The chemical maker said increase in revenue was on the back of higher realizations for all products. Profit before tax stood at Rs 144 crore in Q4 FY22, rising 163% from Rs 55 crore in Q4 FY21. EBITDA increased by 118% to Rs 175 crore while EBITDA margin improved by 405 basis points to 35% in Q4 FY22, despite high inflationary pressure on raw materials.

On the operational front, overall plant utilization in Q4 FY22 was marginally up to 90% as compared to 89% in the corresponding prior period.

On a full year basis, the company reported a 151% rise in net profit to Rs 101 crore on a 87% rise in net sales to Rs 1,551 crore in financial year ended 2022 over financial year ended 2021. EBITDA increased by 95% to Rs 509 crore while EBITDA margin improved marginally at 33% despite inflationary pressure on raw material prices. PAT margin was up by 413 bps to 16%.

Commenting on the results, Maulik Patel, chairman and MD of MFL said, We have achieved highest ever revenue & PAT of Rs 1,551 crore and Rs 253 crore. Our strong operational efficiency and internal cost control measures allowed us to maintain margins even with the inflationary pressure. I am happy to announce a 5-year vision of achieving Rs 5,000 crores in revenue by FY27, translating to a revenue CAGR of 25% from here on. This growth will come from higher revenue contribution of value-added derivatives & specialty chemical. We have announced to enter in Chlorotoluene & its value chain and in phased manner we will keep on announcing our further capex in the future. We continue to move forward in our strategic direction of expanding scale, strengthening integration and achieving low cost of operations.

Meghmani Finechem, part of the Ahmedabad-based Meghmani group, was incorporated in September'2007 as a subsidiary of Meghmani Organics, to establish a captive source of caustic soda and chlorine derivatives.

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