Meghmani Finechem Ltd., a Chlor-Alkali manufacturer based in India announced its results for the second quarter ended September 30, 2021.
Q2 Results- QoQ
The company’s net profit grew 27.2% to Rs 47.01 crores ($6.3 million) for the period ended September 30, 2021 as against net profit of Rs 36.95 crores ($4.9 million) for the previous quarter.
Net sales increased 18% to Rs 341.88 crores ($45.6 million) during the period ended September 30, 2021 as compared to Rs 290.52 crores ($38.7 million) during the previous quarter.
Q2 Results- YoY
The company’s net profit grew 83.4% to Rs 47.01 crores ($6.3 million) for the period ended September 30, 2021 as against net profit of Rs 25.63 crores ($3.4 million) for the prior-year quarter.
Net sales increased 62% to Rs 341.88 crores ($45.6 million) during the period ended September 30, 2021 as com-pared to Rs 211.26 crores ($28.2 million) during the prior-year quarter.
Half-Year Results- YoY
The company’s net profit grew 93% to Rs 83.97 crores ($11.2 million) for the 6 months period ended September 30, 2021 as against net profit of Rs 43.5 crores ($5.8 million) for the prior-year 6 months period.
Net sales increased 81% to Rs 632.41 crores ($84.3 million) during the 6 months period ended Septem-ber 30, 2021 as compared to Rs 350.11 crores ($46.7 million) during the prior-year 6 months period.
Maulik Patel, Chairman and Managing Director, MFL said, “We are delighted with the stellar performance delivered in HI1 FY22. Our plants have achieved higher capacity utilization and our projects are on track for completion as per the schedule provided. While the demand environment remains robust, our margins were slightly impacted due to inflationary pressure on raw material prices, primarily coal. Despite this, we are confident that margins would be sustained in the similar range of 28-32%.”
Meghmani Finechem is planning to expand its product base to include value added derivative products like Epichlorohydrin (ECH) and Chlorinated Polyvinyl Chloride (CPVC), which are a key raw material for multiple end user industries, which are presently catered by 100% import.
The expansion plan of Epichlorohydrin (50 KTPA), CPVC (30 KTPA), Caustic Soda (106 KTPA) and CPP (36 MW) are going as per schedule.
In H1 FY22, the company spent Rs. 230 crores ($30.7 million) for expansion of all three projects.