Meghmani Finechem revenue rises 87% yoy to Rs1,551 crore, PAT grows 151% yoy in FY22; Stock zooms 5%

26 Apr 2022 , 09:16 AM

Meghmani Finechem Ltd has has delivered a strong operating and financial performance in line with its commitment of growth. The key performance highlights are:

FY2022 OPERATIONAL HIGHLIGHTS:

• Overall plant utilisation increased to 87% in FY22 compared to 81% in FY21
• Hydrogen Peroxide (H2O2) achieved capacity utilization of 78% in FY22, up 21% on a YoY basis
• Caustic Soda & Caustic Potash ECU realisation is up by 74% & 27% respectively
• CMS & H2O2 sales realisation is up by 53% and 20% respectively

FY2022 FINANCIAL HIGHLIGHTS

• Revenue up by 87% to Rs1,551 crore, backed by higher sales volume of Caustic Soda and H2O2 and improved realisation for all the products
• EBITDA increased by 95% to Rs509 crore; EBITDA margin improved marginally at 33% (32% in FY21) despite inflationary pressure on raw material prices
• PAT increased by 151% to Rs253 crore and PAT margin was up by 413 bps to 16%
• ROCE and ROE of the company improved to 29% (16% in FY21) and 36% (16% in FY21) respectively

Q4FY22 FINANCIAL HIGHLIGHT

• On YoY basis, revenue up by 93% to Rs499 crore on account of higher realizations for all the products
• EBITDA increased by 118% to Rs175 crore (Rs80 crore in Q4FY21) and EBITDA margin was up by 405 bps to 35%, despite high inflationary pressure on raw materials
• PAT increased by 202% to Rs99 crore (Rs33 crore in Q4FY21) and PAT margin was up by 712 bps to 20%

STRATEGIC UPDATE for FY2022

• Expansion projects on track for completion as per schedule: ECH — 95%, CPVC Resin — 90% and Caustic Soda — 85%
• In FY22, the Company spent Rs449 crore on capital expenditure
• MFL is expanding into Chlorotoluene & its value chain and establishing the R&D facility
• CRISIL upgraded croreedit rating from A+/Positive to AA-/Stable

Commenting on the results Maulik Patel; Chairman and Managing Director — MFL said: This has been a landmark year for MFL. We made a debut on stock exchange as an independent entity in August 2021.

I am pleased to announce, we have delivered record financial performance. We have achieved highest ever Revenue & PAT of Rs1,551 crore and Rs253 crore. This is a testimony of our team’s effort of delivering excellence despite the tough external environment. 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 croreores in revenue by FY27, translating to a revenue CAGR of 25% from hereon. 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.

On Tuesday morning trade, Meghmani Finchem was trading at Rs1,360 per piece higher by 5.13% on the BSE.