Meghmani Finechem Q1 Results: Net Profit Jumps, Stock Falls 1.84%

Meghmani Finechem Ltd on Thursday posted a nearly three-fold jump in its net profit to Rs 108 crore in the first quarter of the current fiscal on higher revenue. Net profit stood at Rs 37 crore in the same quarter of the previous year, the company said in a statement, according to a PTI news.

The stock has witnessed a decline of 1.84% to close at Rs 1528 apiece on Friday. The 52-week high is Rs 1658 apiece and 52-week low is Rs 10 apiece, respectively. The stock has registered a highest recovery from 52-week low.

Its total revenue from operations rose 84 per cent to Rs 533 crore during the April-June quarter against Rs 290 crore in the year-ago period, added the PTI news

Meghmani Finechem Ltd Chairman and Managing Director Maulik Patel said, "We have delivered record operating and financial performance for the quarter".

The first quarter growth was on account of high realisations and volume growth coming from high efficiency/ capacity utilisation from all the products, he said.

The company has commissioned India's first Epichlorohydrin (ECH) plant based on the glycerol process and has also entered into a joint venture to set up an 18.34-megawatt wind-solar hybrid power plant for internal consumption, he added.
In July, the company also commissioned India's largest CPVC resin plant, as per PTI news.

"Once these new projects stabilise and reach optimum capacity utilisation, it will start contributing in a sizeable way both to the top line and bottom line. We expect that to happen Q3 FY23 onwards," Patel said.

The company said that the expansion project of caustic soda is moving as per the schedule and should get commissioned in the next quarter, said the PTI report.