Meghmani Organics Ltd, an Indian specialty chemicals manufacturer announced its results for the third quarter ended Dec 31, 2022.
Q3 Results- QoQ
The company’s net profit declined by 87.4% to Rs 83.54 million for the period ended Dec 31, 2022 as against net profit of Rs 661.49 million for the previous.
Net sales decreased 14.6% to Rs 5.73 billion during the period ended Dec 31, 2022 as compared to Rs 6.71 billion during the previous quarter.
Q3 Results- YoY
The company reported 87.8% drop in net profit to Rs 83.54 million for the period ended Dec 31, 2022 as against net profit of Rs 683.84 million for the prior-year quarter.
Net sales decreased 14% to Rs 5.73 billion during the period ended Dec 31, 2022 as compared to Rs 6.66 billion during the prior-year quarter.
Meghmani Organics said the company has estimated total loss of Rs 440 million due to fire in finished goods godown in one of the pigment plant at Dahej. Meghmani has adequate insurance cover, the company said.
During the quarter company has recognised loss of Rs 398.5 million on account of loss of assets and has also recognised corresponding insurance claim. The balance Rs 40 million loss has been accounted for during the quarter as per policy provisions, it said.
“The company is well positioned to benefit from ‘China plus one’ strategy of global players coupled with capex plans eyeing on new molecules in agrochemicals,” Meghmani Organics said.
Pigments constitutes 25% of the overall company’s revenue. Meghmani said pigment is witnessing slow export demand and contraction in prices due to challenging global macro environment.
During the quarter pigment performance was adversely impacted due to liquidation of high-cost inventory, it said while expecting the recovery in the demand in the pigment division in the next few quarters.
9 Months – YoY
The company reported 9.2% drop in net profit to Rs 1.83 billion for the period ended Dec 31, 2022 as against net profit of Rs 2.02 billion for the prior-year 9 months period.
Net sales increased 17.6% to Rs 20.65 billion during the period ended Dec 31, 2022 as compared to Rs 17.56 billion during the 9 months period last year.
Meghmani Organics Ltd is a leading player in the Indian chemical industry engaged in the manufacture and sale of specialty chemicals such as pigments and agrochemicals.