Meghmani Finechem Limited revenues for FY21 have grown by 115% YoY, driven by higher sales of Chlor-Alkali (up 98%) and Derivatives (up 183%). 

The company has delivered a strong operating and financial performance despite a challenging environment on account of the Covid pandemic. EBITDA margin expansion of 600 bps to 31% and EBITDA is165% higher at Rs. 80 crores. 

FY21 revenues are 36% higher at Rs. 829 crores. Stable EBITDA margin of 32% driven by higher production and cost-efficient

operations. Cash profit 12% higher at Rs. 174 crores and PAT is at Rs. 101 crores. 

In FY 21, the company achieved 100% capacity utilization of chloromethanes within 2 years of operations whereas Caustic Soda and Caustic Potash operated at 80% and 83% capacity utilisation, respectively. The company has achieved 57% capacity utilisation of Hydrogen Peroxide in the first year of operations and has successfully commissioned phase 2 of the Caustic Soda plant. 

The company is in the process of expanding capacities of existing Caustic Soda plants to 400 KTPA from 294 KTPA currently. MFL is also setting up an Epichlorohydrin (50 KTPA) and CPVC (30 KTPA) plants at Dahej, both the products are 100% import substitutes thus supporting Government of India’s Make in India initiative. Both the plants on track for commissioning in FY23. 

The expansion projects are progressing well, and the majority of the work has been completed. As of Q4 FY21, 60% of Epichlorohydrin project, 40% of CPVC project and 40% of Caustic Soda project was completed. Total Capex for all three projects is Rs. 695 crores. 

Commenting on the results Maulik Patel, Chairman and Managing Director, MFL said, “The last year has been quite challenging and has brought many economic hardships and a host of other constraints for many of us. Throughout the pandemic, our firm has worked tirelessly to fulfill our most fundamental responsibility: supporting our employees, customers, clients, and communities. Despite these disruptions our company showed tremendous resilience and delivered a strong business performance. Our FY21 revenue grew 36% and we maintained a strong EBITDA margin of 32%.” 

“We will maintain our focus on cost efficient operations and on the value-added derivatives ofch/or-alkali. Our state-of-the-art manufacturing facilities provide us with a unique strategic edge. The capacity expansion of our existing products along with our foray into ECH and CPVC will catapult us to a higher growth trajectory and at the same time create superior value for our shareholders,” added Patel.

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