Meghmani Organics Q4FY22 revenue grows 77% yoy at Rs813 crore; Stock gains 1.5%

5 May 2022 , 09:17 AM

Meghmani Organics Ltd has announced its financial results for the quarter and year ended March 31, 2022.

Q4 FY2022 Results – Highlight

• Revenue grew by 77.1% YoY to Rs813 Crore in Q4 FY2022 aided by higher capacity utilization along with improvement in volume & realisation from Pigment and Agrochemicals business
• Company’s EBITDA grew by 305 % yoy to Rs136 crore. EBITDA margin expanded by 947 bps.
• PAT grew by 202.9% yoy to Rs107 crore and PAT margin stood at 13.2% in Q4FY2022
• Company’s Debt-Equity ratio stood at .3x.
• ROCE and ROE (annualized) stand robust at 19.0% and 23.6%, respectively as of 31st March 2022.

Operations Highlights

• During Q3 FY2022, Meghmani Organics fast-tracked its foray into the new pigments category of Titanium Dioxide (TiO2) by acquiring Kilburn Chemicals Limited. This acquisition was funded through internal accruals deploying Rs132 crore.
• Company’s capacity expansion is going as per plans. In Pigment division spending CAPEX of Rs. 275 Crore for commercialising existing capacity of TiO2 (16500 TPA) in phase 1, and Rs. 325 Crore for a further capacity expansion to 33000 TPA in Phase 2. The Phase 1 capacity is expected to be commercialised by Q3 FY2023, while Phase 2 is expected to be commissioned by Q3 FY2024. This will add revenue of Rs 650-700 Crore on full year of operations. In Agrochemicals division, addition of new multipurpose plant with backward integration is progressing as per plan and is expected to be commissioned in Q2 FY2023. This will add revenue of ~ Rs 600 Crore on full year of operations basis. Company is also working on the next phase of expansion in Agro division which will be announced in due course.
• Maintaining the consistency in declaring dividends, company has declared dividend of 140% for FY2022. Company has formulated a very sound and sustainable Dividend Distribution Policy of up to 20% of PAT, as Dividend pay-out to the Shareholders.

Commenting on the results, Ankit Patel, Chief Executive Officer, said, “FY2022 has remained very challenging due to volatility in raw material prices and global supply chain distruptions. Despite the challenging business environment, company has witnessed an encouraging performance and has reported robust operational efficiencies.

During this year the company has reported higher production volumes on the back of capacity additions in FY2021 and better capacity utilisation. The company’s expansion projects are on schedule. This shall significantly add to the revenue of the Company, going forward.

The Company’s corporate governance continues to be steadfast, and it’s efforts are in line with protecting the environment and contributing to society unabated. Going forward, the company is squarely focused on improving stakeholders’ value through an all round improvement in the company’s performance.

At around 9:17 AM, Meghmani Organics was trading at Rs142 per piece higher by 1.57% on the BSE.