Key highlights from Meghmani Finechem Limited (MFL) Q1 FY23 Earnings Concall
- On 18 July MFL commissioned India’s largest CPVC resin plant with a production capacity of 30,000 tons per annum. From 3Q23 onwards, MFL expects volume of CPVC to pick up.
- Deepak Poddar from B&K Securities asked about weakness with respect to caustic prices, if it’s related to demand sluggishness or seasonal factors. Maulik Patel MD said that price reduction is not there in the caustic soda. MFL feels the caustic soda price correction will not happen as much as it is in the other products.
- Deepak Poddar of B&K Securities enquired about European power crisis if it has resulted in some new opportunities emerging for the entire sector with respect to exports. Maulik Patel MD replied that definitely European prices is higher and the U.S. prices is higher, so supply chain will be changed immediately based on the pricing effect, based on the continent. So, high demand and high opportunity will be possible in the coming times.
- Riya Mehta with Aequitas Investment asked that overall as a total, across all the sectors, how much decline in demand does MFL see in domestic market. Maulik Patel MD said that demand, if India is growing, as infrastructure spending is starting in the chemical sector because of the PLI, agrochemical, pharma sector. The capex will continue and the demand will absorb the expanded capacity in coming times.
- Riya Mehta with Aequitas Investment also asked about the capacity utilization forecast for FY23. Sanjay Jain CFO said that for caustic soda, MFL expects about 90% is true capacity of plant efficiency.
- Riya Mehta with Aequitas Investment asked about the power cost per unit currently and coal price. Sanjay Jain CFO replied that for this quarter, the generation cost is roundabout INR9.5 for captive power plant. On coal price, there is a slight effect in the coming quarter. But it will come in 2Q and 3Q onwards.
- Riya Mehta with Aequitas Investment asked about the breakup of the revenue from each segment like caustic, ECH, etc. Maulik Patel MD said that MFL will be reaching to optimum capacity utilizations for the new plants, ECH and CPVC, by FY24. Once that happens, MFL expects its revenue contribution from Derivatives and Specialty to be around 45%, 50% of the total revenue.
- Riya Mehta with Aequitas Investment enquired about the current ECU of caustic and the chlorine realizations. Maulik Patel MD said the current ECU realization is INR50,000 for caustic as of now. It is a little bit on the higher side compared to 4Q22.
- Deepak Poddar of Sapphire Capital asked about the savings expected from the 18.5-megawatt solar plant expected to commission by 3Q23. Maulik Patel MD answered that right now, MFL is getting power from the grid and the captive power plant. Definitely it will save more than 30% of the power cost.
Cochin Shipyard Limited (NSE:COCHINSHIP) Q4 FY22 Earnings Concall dated May. 26, 2022 Corporate Participants: Madhu S Nair -- Chairman & Managing Director Jose V J -- Director Finance Analysts: Vastupal Shah
Can you guess the name of the company that was listed during the IPO frenzy in 2020 and is the second largest player in the Indian municipal waste management industry?
“Hey, how is the market doing today?” “Oh!, its falling tremendously since morning” I am sure news like these might be a common topic of discussion for you nowadays. Interestingly,