Home/ Companies / Company Results/  Meghmani Finechem Q2 results: PAT jumps 83% on higher capacity utilisation

Chemical making company Meghmani Finechem Ltd on Tuesday reported a standalone net profit of 47 crore for the second quarter ended September. The PAT was up 88% over last year's 26 crore.

Revenue from operations rose 61% to 340 crore as compared to 211 crore clocked in the year-ago period. 

Segment wise, Chlor-Alkali and Derivatives revenue were up 50% and 96% respectively, which led to an overall robus revenue growth.

The company's EBITDA increased 41% to 101 cr in Q2FY21 on a year-on-year basis. Margins maintained at 29.6% in the second quarter despite jump in raw material prices.

Ahead of the results, Meghmani Finechem shares rose 5% to close at 870 a piece on NSE. Since the listing in August, the stock has soared 114.10%.

"We are delighted with the stellar performance delivered in H1FY22. 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 are margins would be sustained in the similar range of 28-32%," said Maulik Patel, Chairman and Managing Director of MFL.

A subsidiary of Meghmani Organics Ltd, Meghmani Finechem was incorporated in 2007 and is a leading manufacturer of Chier-Alkali products and value-added Derivatives.

The company got listed recently on August 18 as an independent entity after the reorganisation. The restructuring was done to unlock the potential of the chloro-alkali and derivatives.

The company is India's fourth largest manufacturer of Caustic Soda, Chlorine and Hydrogen and a leading manufacturer of Caustic Potash, Chloromethanes and Hydrogen Peroxide.

On the growth outlook, the company's chairman said he is convinced that the demand will continue to be robust, and we are strategically positioned to fully capture this demand.

"We are sure of achieving our long term revenue guidance of 2,000 crore by FY24," he said.

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Updated: 26 Oct 2021, 05:55 PM IST
Next Story
Recommended For You
Get alerts on WhatsApp
Set Preferences My Reads Watchlist Feedback Redeem a Gift Card Logout