Agrochemicals company Meghmani Organics announced Q3FY24 & 9MFY24 results:
Financial Highlights
- Q3FY23 vs Q3FY24:
- The revenue from operations decreased from Rs 553.8 crore in Q3FY23 to Rs 344.5 crore in Q3FY24.
- EBITDA dropped from a positive Rs 61.4 crore in Q3FY23 to a negative Rs (0.4) crore in Q3FY24.
- The EBITDA Margin shrank from 11.1% in Q3FY23 to (0.1%) in Q3FY24.
- Net Profit decreased from a positive Rs 17.9 crore in Q3FY23 to a negative Rs (27.2) crore in Q3FY24.
- Net Profit Margin declined from 3.2% in Q3FY23 to (7.9%) in Q3FY24.
- 9MFY23 vs 9MFY24:
- Revenue also showed a contraction from Rs 1,992.1 crore in 9MFY23 to Rs 1,140.0 crore in 9MFY24.
- EBITDA also recorded a negative balance of Rs (0.7) crore in 9MFY24 in contrast to the positive Rs 280.3 crore in 9MFY23.
- Net Profit saw a decline from Rs 205.3 crore in 9MFY23 to Rs (56.2) crore in 9MFY24.
Segment Performance in Q3FY24:
- Crop Protection: Contributed approximately 69% to overall revenue, with Rs 239 crore in Net Revenue and Rs 5.1 crore in EBITDA.
- Pigments: Accounted for about 31% of the company's revenue, with Rs 105 crore in Net Revenue and Rs 0.9 crore in EBITDA.
Ankit Patel, Chairman & Managing Director, said: "For the quarter under review, we continued to witness sluggish global demand coupled with lower product price realizations across markets impacting our revenue and profitability. As management we have proactively undertaken cost control measures, clearing the high-priced inventory, optimizing the working capital utilization, and enhancing the cash conversion cycle to maintain our balance sheet strength.
We anticipate that the overall scenario will start normalizing from the next financial year. Nano Urea and Titanium Dioxide would also start contributing meaningfully from FY25 which would help us strike a balance between export and domestic business.
To conclude, once again I would like to reiterate that our long-term growth prospects remain intact, given our expanded infrastructure, plant compatibility, wider product range, and geographical reach which will help Meghmani Organics to command a sustainable long-term position."