Meghmani Organics Q4 results: Net Revenue and EBITDA for Crop Protection segment stood at INR 1,078.9 crore and INR 44.1 crore respectively

Meghmani Organics Limited (MOL) (BSE: 543331, NSE: MOL), a fully integrated diversified chemical company announced its financial results for the fourth quarter ended 31 March 2024 (Q4 FY24). 

Financial Results at Glance:

During Q4 FY24, revenue from operations and EBITDA stood at INR 399.8 crore and INR 10.1 crore respectively; registering a gradual improvement on QoQ basis. For the financial year ended 31 March 2024 (FY24), revenue from operations and EBITDA stood at INR 1,539.9 crore and INR 9.5 crore respectively; impacted by sluggish demand and lower product price realizations across markets. Profitability was impacted due to inventory destocking of ~INR 70 crore.

Crop Protection constitutes ~70% of the overall company’s revenue in 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 1,078.9 crore and INR 44.1 crore respectively in FY24.

Pigments constitutes ~30% of the overall company’s revenue in 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 461.0 crore and INR (6.6) crore respectively in FY24.

Commenting on Q4 & FY24 performance, Mr. Ankit Patel, Chairman & Managing Director said ″For the quarter under review, there was a gradual improvement on a QoQ basis however on a full year basis our revenue and profitability were impacted by continued sluggish global demand, lower product price realizations across markets, and inventory destocking.

We have recently commissioned our Nano Urea plant and Titanium Dioxide (TiO2)’s co-gen power plant. Moving into FY25, contribution from Nano Urea and TiO2 will complement our existing Crop Protection and Pigment businesses in which we see gradual recovery in demand followed by improved pricing from H2 FY25.

We also plan to introduce 4 to 5 products in fertilizers, biofertilizer and biostimulant category in our Crop Nutrition basket, providing a comprehensive, one-stop solution for our farmers to improve the productivity and nutrient use efficiency.

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.″