Meghmani Finechem shares plunge 5%, hit sub-Rs 1,000 level in knee-jerk reaction to Q4 results

Shares of integrated chemical manufacturer Meghmani Finechem plunged 5 per cent in Tuesday's trade in a knee-jerk reaction to the company's March quarter results. The company reported a 22 per cent year-on-year drop in net profit at Rs 77 crore in the fourth quarter compared with Rs 99 crore profit in the same quarter last year.

This is even as revenue for the quarter rose 13 per cent YoY to Rs 562 crore from Rs 499 crore in the year-ago quarter. Revenue contribution from derivatives & specialty chemical segment increased 38 per cent YoY.

The stock dropped 5.17 per cent to hit a low of Rs 990.90 on BSE.

Volume growth for the quarter stood at 15 per cent YoY, led by new product CPVC Resin and Epichlorohydrin contribution and growth in volume of caustic soda and hydrogen peroxide

The capacity utilisation of hydrogen peroxide reached 98 per cent, CMS 102 per cent.

Realisation for caustic soda dropped 23 per cent, chloromethanes dropped 13 per cent and hydrogen peroxide increased 1 per cent.

"Our strategy to diversify in high value new products and continuous expansion has brought us volume growth of 15 per cent YoY and 13 per cent QoQ. Revenue contribution from derivatives & specialty chemical segment touched 38 per cent of our revenue in Q4FY23 and our efforts are to further enhance revenue share from this segment. All our future expansion plans are towards this segment,” said Chairman and Managing Director Maulik Patel.

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