Meghmani Finechem Limited made a stellar debut on stock exchanges on August 18, as the stock got listed at Rs387.10 on NSE, a 180% premium to its opening price of Rs138.25 (Closing price of its parent company, Meghmani Organics Ltd, on May 17, 2021). On BSE, the script got listed at Rs386.35, up 180%.
The shareholders of Meghmani Organics Ltd (Face value Rs1 per share) were allotted shares of MFL (Face value of Rs10 per share) in the ratio of 1000:94. Considering the face value of both the companies at the same price, the ratio comes to 94 shares of MFL against 100 shares of MOL.
In addition to the listing, the company has delivered a strong operating and financial performance in Q1FY22 amidst the second wave of the pandemic.
The company reported 111% yoy higher revenue at Rs290cr, driven by higher sales of Chlor-Alkali (up 92%) and its Derivatives (up 170%). EBITDA margin increased by 190 bps to 31.9% yoy; absolute EBITDA increased by 124% yoy at Rs92 cr in Q1FY22. Profit after Tax (PAT) increased by 107% to Rs37cr and PAT margin was maintained at 12.7%.
The company said in a filing on Wednesday that Derivative (CMS and H2O2) segment contributed 32% to revenue from operations in Q1FY22 compared to 25% in Q1FY21. ROCE% improved to 22.3% and ROE improved to 24.8% in Q1FY21.
Meghmani Finechem Ltd stock trade ended at 5% upper circuit and 52-week high at Rs405.65 per piece up Rs19.30 or 5.00% on the BSE.
Q1FY22 operational highlights:
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Capacity utilization across all the division is highest ever
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On yoy, ECU realisation for Caustic Soda improved by 12% and CMS sales realisation improved by 40%.
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H2O2 sales realisation improved by 36% qoq
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Achieved 75% capacity utilisation of Hydrogen Peroxide in the 2nd year of operations.
Strategic update
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The expansion plan of Epichlorohydrin (50 KTPA), CPVC (30 KTPA), Caustic Soda (106 KTPA) and CPP (36 MW) are going as per schedule.
Maulik Patel; Chairman and Managing Director – MFL said: “The listing of MFL as a separate entity is a key milestone in our journey towards sustainable and long term value creation. We at MFL have a singular focus of creating a world-class chemicals company with strong focus on sustainability.
Our highly capable management team and our motivated workforce are ensuring that we continue our strong growth trajectory. This is also evident from the fact that we delivered on of our best operational and financial performance in Q1FY22, despite an extremely challenging environment on account of 2nd wave of Covid. Our revenue and profitability both grew 2.1x compared to Q1 of last year. We have been able to maintain our balance sheet strength and our growth have primarily been financed through strong internal cash flows. We hope to maintain similar momentum in the coming quarter and are confident of delivering superior stakeholder value.”