Meghmani Organics Limited – Q2 FY25
| Division | Revenue (INR Crores) | Revenue Growth (Y-o-Y) | Production Volume (Metric Tons) | Production Growth (Y-o-Y) | Capacity Utilization |
|---|---|---|---|---|---|
| Crop Protection | 397 | 50% | 11,473 | 38% | 84% |
| Pigment | 135 | 23% | 3,692 | 24% | 45% |
| Titanium Dioxide | Not Available | Not Available | Not Available | Not Available | 40% |
| Crop Nutrition | Not Available | Not Available | Not Available | Not Available | Not Available |
Key Financials (Q2 FY25 – Standalone Basis)
- Revenue: INR 532 Crores (42% growth year-over-year, 30% growth quarter-over-quarter)
- EBITDA: INR 41.2 Crores (179% growth year-over-year, 190% quarter-over-quarter)
- Net Profit: INR 8.6 Crores (compared to a loss of INR 3.6 crores in Q2 of the last fiscal year)
- Revenue Mix:
- Crop Protection: 75%
- Pigment Segment: 25%
Key Pointers
- Demand Recovery: The company is seeing a gradual recovery in demand in both the Crop Protection and Pigment segments. This is attributed to:
- Completion of channel inventory destocking.
- Gradual increase in demand.
- Anticipated Price Improvement: The management expects pricing to improve in the coming quarters. This is based on:
- Expectations that demand will continue to outpace supply.
- Decreasing logistics costs.
- New Product Launches: The company has introduced multiple new products in the last two years, including:
- Flonicamid
- Ethiprole
- Cyfluthrin
- Beta Cyfluthrin
- Dinotefuran
- Spiromesifen
- Flubendiamide
- Cyhalothrin
- Brazil Expansion: The company is establishing a subsidiary in Brazil to facilitate product registrations and expand their market reach in this significant market.
- Capacity Utilization:
- Crop Protection: 84% in Q2 FY25
- Pigment: 45% in Q2 FY25
- Titanium Dioxide: 40% in Q2 FY25
- Titanium Dioxide Performance: The performance of this division is uncertain and dependent on the imposition of anti-dumping duties on Chinese imports.
Future Outlook
- Return to Double-Digit Growth: The company anticipates regaining its historical double-digit growth trajectory based on its infrastructure, diverse product range, and market reach.
- Focus on Operational Efficiency: Management plans to focus on increasing capacity utilization and reducing debt in the near term to improve profitability.
- Limited Capital Expenditures: Meghmani Organics does not plan significant capital expenditures in the coming years.
Challenges
- Titanium Dioxide Uncertainties: The success of the TiO2 investment is heavily dependent on government action (anti-dumping duties). The management is exploring ways to improve efficiency and profitability even without these duties.
- Pigment Segment Competition: Managing competition from smaller players, potentially operating with lower costs, will be critical to improving margins in this segment.
| Subscribe To Our Free Newsletter |
