A leading manufacturer of speciality chemicals and agrochemicals, known for its global presence and diversified product portfolio, has reported a 35 percent annual revenue surge alongside a profitable quarter After seven consecutive quarters of losses. This article explores its turnaround strategies, operational challenges, and future outlook amid shifting market dynamics.
Meghmani Organics Limited’s stock, with a market capitalisation of Rs. 1,904 crores, rose to Rs. 78.90, hitting an intraday high of 11.36 percent from its previous closing price of Rs. 70.85. However, the stock over the past year has given a negative return of 8.55 percent.
Recent Q4 Results
In Q4FY25, the company reported a revenue of Rs. 553 crore, showing a 35 percent YoY growth compared to Rs. 410 crore in Q4FY24 but a slight 3 percent decline QoQ from Rs. 569 crore in Q3FY25. On the profit front, Q4FY25 saw a profit of Rs. 20 crore, a significant turnaround from a loss of Rs. 18 crore in Q4FY24 and an improvement from the Rs. 4 crore loss in Q3FY25.
Management Commentary
“From second quarter onwards, both the segments started witnessing healthy volume growth coupled with our strategic focus on enhancing our product mix. This approach has significantly improved our revenue and profitability for FY25.
We reported 30 percent YoY growth in revenue, reaching Rs. 2,003.9 crore and achieved a remarkable turnaround in profitability, posting a profit after tax of Rs. 66.4 crore against a loss of INR 56.6 crore in the corresponding previous year.
Our Crop Nutrition segment has reached self-sufficiency in FY25, marking a critical milestone in our journey. Nonetheless, we remain committed on conducting extensive field activities with farmers showcasing the efficacy of Meghmani Nano Urea on different crops. Additionally, we plan to expand our product portfolio by adding 2 to 3 new products in FY26, further strengthening our market position.
In Titanium Dioxide (TiO2), we have established a good customer base and are currently catering to customers from ceramic, rubber, paint, plastic and textile. However, we are facing challenges in achieving optimal plant utilisation because of intense pricing pressure due to aggressive dumping by China.
To address this, DGTR has recommended an antidumping duty of $460-681 per MT on TiO2 imports from China, which will provide much needed relief to domestic players, helping to stabilize the market and improve our capacity utilisation. Simultaneously, we are also targetingthe Export market for better realization as other countries have already imposed ADD on TiO2 from China,” said Mr. Ankit Patel, Chairman & Managing Director.
Also read: Ambani Group stock skyrockets 13% after reporting 199% QoQ net profit growth in Q4
Revenue Mix
During the quarter under review, the Crop Protection segment reported strong growth with revenue of Rs. 369.7 crore, up 34 percent year-on-year (YoY), and EBITDA of Rs. 61.4 crore, up 343 percent YoY. The Pigments segment also showed improvement, recording revenue of Rs. 132.4 crore (up 6 percent YoY) and EBITDA of Rs. 8.2 crore (up 137 percent YoY).
Crop protection remained the key revenue driver, contributing around 72 percent to total revenue. The segment’s revenue stood at Rs. 1,450.6 crore, up 34 percent YoY, with EBITDA increasing sharply to Rs. 177.2 crore, up 301 percent YoY. Capacity utilisation for the segment was 76 percent, with production rising 14 percent YoY to 41,892 MT.
The Pigments segment accounted for the remaining 28 percent of revenue. It posted Rs. 553.3 crore in revenue, up 20 percent YoY, and EBITDA of Rs. 26.9 crore, recovering from a loss of Rs. 6.6 crore in the previous year. Capacity utilisation stood at 46 percent, with production increasing 11 percent YoY to 15,237 MT.
Written By Fazal Ul Vahab C H
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