-
Revenue from Operations: INR 532 crore, growth of 42% year-on-year and 30% quarter-on-quarter.
-
EBITDA: INR 41.2 crore, increase of 179% year-on-year and 190% quarter-on-quarter.
-
Net Profit: INR 8.6 crore, compared to a loss of INR 3.6 crore in the previous year.
-
Crop Protection Segment Revenue: INR 397 crore, up by 50% year-on-year.
-
Crop Protection Segment EBITDA: INR 43.2 crore, up by 75% year-on-year.
-
Crop Protection Segment Production: 11,473 metric tons, up by 38% year-on-year.
-
Crop Protection Segment Capacity Utilization: 84%.
-
Pigment Segment Revenue: INR 135 crore, up by 23% year-on-year.
-
Pigment Segment EBITDA: INR 4.2 crore, compared to a negative EBITDA of INR 2.5 crore in the previous year.
-
Pigment Segment Production: 3,692 metric tons, up by 24% year-on-year.
-
Pigment Segment Capacity Utilization: 45%.
-
Titanium Dioxide Plant Capacity Utilization: 40%.
Release Date: October 28, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Meghmani Organics Ltd (BOM:543331) reported a significant revenue growth of 42% year-on-year and 30% quarter-on-quarter, reaching INR 532 crore.
-
EBITDA for the quarter increased by 179% year-on-year and 190% quarter-on-quarter, indicating strong operational performance.
-
The crop protection segment showed robust growth with a 50% year-on-year increase in revenue and a 75% rise in EBITDA.
-
The company has successfully stabilized its titanium dioxide plant, improving product quality and price realization.
-
Meghmani Organics Ltd (BOM:543331) is witnessing gradual demand recovery and expects further improvement in pricing, supported by anticipated anti-dumping duties on Chinese imports.
Negative Points
-
Price realization in the agrochemical segment remains under pressure due to supply-side challenges and channel inventory destocking.
-
The titanium dioxide segment is heavily reliant on the implementation of anti-dumping duties to improve profitability, posing a risk if these duties are delayed or not enacted.
-
The pigment segment is operating at a low capacity utilization of 45%, impacting overall profitability.
-
The company faces challenges in the titanium dioxide market due to significant dumping by Chinese manufacturers, affecting global pricing.
-
Finance costs have increased significantly due to currency volatility, impacting overall financial performance.
Q & A Highlights
Q: Can you provide insights on the expected improvement in price realization for the agrochemical segment? A: Ankit Patel, Executive Chairman and CEO, explained that while there is an improvement trend, significant progress is still needed. The de-stocking phase has largely concluded, and demand is gradually improving. Price realization is expected to improve from January onwards, with logistics costs also stabilizing.