Meghmani Organics Q3 results: Net Revenue and EBITDA for Crop Protection segment stood at INR 239 crore and INR 5.1 crore respectively

Meghmani Organics Limited (MOL) (BSE: 543331, NSE: MOL), a fully integrated diversified chemical company announced its financial results for the third quarter ended 31 December 2023 (Q3 FY24).

Financial Results at Glance:

During Q3 FY24, revenues from operations and EBITDA stood at INR 345 crore and INR (0.4) crore respectively; impacted by sluggish demand and lower product price realizations across markets.

Crop Protection constitutes ~69% of the overall company’s revenue during Q3 FY24. The segment performance was impacted as the global demand continues to remain sluggish owing to high channel inventory and high interest rate scenario. Net Revenue and EBITDA for the segment stood at INR 239 crore and INR 5.1 crore respectively.

Pigments constitutes ~31% of the overall company’s revenue in Q3 FY24. The segment was impacted by the prevailing price erosion in the pigment industry due to demand contraction globally. Net Revenue and EBITDA for the segment stood at INR 105 crore and INR 0.9 crore respectively.

Commenting on Q3 FY24 performance, Mr. Ankit Patel, Chairman & Managing Director said ″For the quarter under review, we continued to witness sluggish global demand coupled with lower product price realizations across markets impacting our revenue and profitability. As management we have proactively undertaken cost control measures, clearing the high-priced inventory, optimizing the working capital utilisation, and enhancing cash conversion cycle to maintain our balance sheet

strength.

We anticipate that the overall scenario will start normalizing from next financial year. Nano Urea and Titanium Dioxide would also start contributing meaningfully from FY25 which would help us strike a balance between export and domestic business.

To conclude, once again I would like to reiterate that our long-term growth prospects remain intact, given our expanded infrastructure, plant compatibility, wider product range, and geographical reach which will help Meghmani Organics to command sustainable long-term position.″