Manali Petro edges higher after decent Q4 performance

Manali Petrochemical advanced 2.74% to Rs 73.55 after the company reported a consolidated net profit of Rs 1.30 crore in Q4 FY24 as against a net loss of Rs 0.46 crore in Q4 FY23.

Total income during the quarter declined by 22% year-over-year to Rs 262.63 crore.

Total expenses in the fourth quarter fell by 26% to Rs 249.09 crore, primarily due to lower raw material costs (down 28% YoY) and lower other expenses (down 15% YoY).

Profit before tax in Q4 FY24 stood at Rs 8 crore, which is significantly higher as compared with the PBT of Rs 2.41 crore posted in Q4 FY23. Net tax outgor for the period under review was Rs 6.70 crore as against Rs 2.87 crore in the corresponding period last fiscal.

For FY24, Manali Petrochemical has reported net profit and total income of Rs 19.21 crore (down 62% YoY) and Rs 1,061.51 crore (down 12% YoY), respectively.

"During the year, the company continued to get affected by the dumping of imported materials at cheaper prices and the increase in raw materials cost which have impacted our margins. Despite the temporary disruptions caused on account of Cyclone Michaung in the month of December 2023, the company could maintain its top line at consolidated level this year, Manali Petrochemical said in a statement.

R Chandrasekar, managing director of MPL, commented: "MPL's performance, despite severe dumping pressure from neighboring countries and resulting margin challenges, underscores our commitment to remain competitive as per market demand. We've appealed to the government for better policies to protect domestic players, aiming to achieve a level playing field in the near future.

Seperately, Manali Petrochem informed that its board has approved setting up additional manufacturing facilities in Western Part of India.

Part of Singapore-based AM International Group, Manali Petrochemicals (MPL) is a leading petrochemical manufacturer. It markets propylene glycol and polyols.

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