Meghmani Finechem Limited (MFL) is aiming to achieve Rs. 5,000 crore in revenue by FY27, translating to a revenue CAGR of 25%.

“I am happy to announce a 5-year vision of achieving Rs. 5,000 crore in revenue by FY27, translating to a revenue CAGR of 25% from here on. This growth will come from higher revenue contribution of value-added derivatives and specialty chemicals. We have announced to enter Chlorotoluene and its value chain and in a 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,” said Maulik Patel, Chairman and Managing Director, Meghmani Finechem Limited.  

The company has registered a revenue jump of 93% to reach Rs. 499 crore on account of higher realization for all the products.

EBITDA increased by 118% to reach Rs. 175 crore (Rs. 80 crore in Q4 FY21) and EBITDA margin was up by 405 bps to 35%, despite high inflationary pressure on raw materials. PAT increased by 202% to Rs. 99 crore (Rs. 33 crore in Q4 FY21) and PAT margin was up by 712 bps to 20%.

The company has delivered a strong operating and financial performance in line with its commitment of growth. 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% and 27% respectively; CMS & H2O2 sales realisation is up by 53% and 20% respectively.

Revenue rose by 87% to reach Rs. 1,551 crore in FY2022 backed by higher sales volume of Caustic Soda and H2O2 and improved realisation for all the products. EBITDA increased by 95% to Rs. 509 crore; EBITDA margin improved marginally at 33% (32% in FY21) despite inflationary pressure on raw material prices. PAT increased by 151% to Rs. 253 crore and PAT margin was up by 413 bps to 16%.

Expansion projects on track for completion as per schedule: ECH – 95%, CPVC Resin – 90% and Caustic Soda – 85%. In FY22, the company spent Rs. 449 crore on capital expenditure. MFL is expanding into Chlorotoluene and its value chain and establishing the R&D facility.

Commenting on the results, Patel said, “This has been a landmark year for MFL. I am pleased to announce; we have delivered record financial performance. We have achieved the highest ever Revenue and PAT of Rs. 1,551 crore and Rs. 253 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.”

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