Meghmani Finechem Limited (MFL), a leading manufacturer of Chlor-Alkali products and value-added Derivatives Q2 FY22 revenue has shown a growth of 61% to reach Rs. 340 crore and profit growth of 81% to reach Rs. 47 crore.   

MFL is now expanding its product base to include value added derivative products like Epichlorohydrin (ECH) and Chlorinated Polyvinyl Chloride (CPVC), which are a key raw material for multiple end user industries, which are presently catered by 100% import.

The expansion plan of Epichlorohydrin (50 KTPA), CPVC (30 KTPA), Caustic Soda (106 KTPA) and CPP (36 MW) are going as per schedule. In H1 FY22, the company spent Rs. 230 crore for expansion of all three projects.

Commenting on the results Maulik Patel, Chairman and Managing Director, MFL said, “We are delighted with the stellar performance delivered in HI1 FY22. Our plants have achieved higher capacity utilization and our projects are on track for completion as per the schedule provided. While the demand environment remains robust, our margins were slightly impacted due to inflationary pressure on raw material prices, primarily coal. Despite this, we are confident that margins would be sustained in the similar range of 28-32%.”

As per the growth outlook, we are convinced that the demand will continue to be robust, and we are strategically positioned to fully capture this demand. We are sure of achieving our long-term revenue guidance of Rs. 2,000 crore by FY24.

The strategic investment done in various capacity enhancements in the last 3 years are now yielding results. Similarly, currently we are investing in further expansion and new products capacities, to maintain this consistent growth and create exceptional value for shareholders.

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