{"id":144225,"date":"2023-04-26T10:45:26","date_gmt":"2023-04-26T14:45:26","guid":{"rendered":"https:\/\/44.250.171.167\/?p=144225"},"modified":"2023-04-26T10:45:28","modified_gmt":"2023-04-26T14:45:28","slug":"meghmani-finechem-limited-q4-fy23-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/meghmani-finechem-limited-q4-fy23-earnings-conference-call-insights\/","title":{"rendered":"Meghmani Finechem Limited Q4 FY23 Earnings Conference Call Insights"},"content":{"rendered":"<p><iframe loading=\"lazy\" title=\"Meghmani Finechem Limited Q4 FY23 Earnings Concall\" width=\"500\" height=\"375\" src=\"https:\/\/www.youtube.com\/embed\/ZjLZNU_Kpd8?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p><strong>Key highlights from Meghmani Finechem Limited (MFL) Q4 FY23 Earnings Concall<\/strong><\/p>\n<p><strong>Management Update:<\/strong><\/p>\n<ul>\n<li>[00:03:44] MFL said its expansion plans such as additional capacity of CPVC resin, chlorotoluene&#8217;s value chain and an R&amp;D center are moving according to schedule and will drive growth in FY25.<\/li>\n<\/ul>\n<p><strong>Q&amp;A Highlights:<\/strong><\/p>\n<ul>\n<li>[00:07:21] Dhruv asked about the performance of chlorine in 4Q23 and margin for caustic business. Maulik Patel MD said chlorine consumption is currently at 65%, and the EBITDA margin for the company as a whole is between 26-30%.<\/li>\n<\/ul>\n<ul>\n<li>[00:09:33] Babby J of Falcar Investment asked that to the INR155 crore operating EBITDA how much did ECH and CPVC contribute. Maulik Patel MD answered that EBITDA for both ECH and CPVC is in the range of 25-30%.<\/li>\n<\/ul>\n<ul>\n<li>[00:14:25] Babby J of Falcar Investment enquired if MFL is going to be selling the bulk of ECH domestically or exports and CPVC. Maulik Patel MD said it\u2019s going to be mix of both. According to the current situation, 40% will be exports and 60% domestic. CPVC will be 100% domestic.<\/li>\n<\/ul>\n<ul>\n<li>[00:16:22] Amit Vora from the Homoeopathic Clinic enquired about the inventory levels going up from 54% in 2021 to 154% in FY22 and now at 211%. Maulik Patel MD said major projects like ECH and CPVC, along with bulk exports and increased operations, have led to an increase in inventory from INR154 crores in FY22 to INR211 crores in FY23.<\/li>\n<\/ul>\n<ul>\n<li>[00:17:24] Amit Vora from the Homoeopathic Clinic asked about the caustic soda realization and capacity utilization in 4Q23. Maulik Patel MD answered that caustic soda realization for 4Q23 was 38,000. On the increased capacity, utilization was around 78%.<\/li>\n<\/ul>\n<ul>\n<li>[00:18:28] Jenam Gilani of Swan Investment enquired about the realization for CPVC and ECH during 4Q23. Maulik Patel MD said ECH realization would be revolving somewhere around 1,20,000-1,25,000 and the CPVC would be around 1,50,000 to 1,60,000.<\/li>\n<\/ul>\n<ul>\n<li>[00:19:52] Archit Joshi from B&amp;K Securities asked about plans for chlorotoluenes and how do they compare to the competitors\u2019 plans. Maulik Patel MD said MFL is building a chlorotoluene facility in India that is nearly finished and will be commissioned by the end of FY24. The facility will make 15 products with 4-5 chemistries, and MFL is also creating an R&amp;D center to focus on making value-added products.<\/li>\n<\/ul>\n<ul>\n<li>[00:23:13] Archit Joshi from B&amp;K Securities asked about the expected revenue and margins for the first phase of MFL project. Maulik Patel MD replied that MFL chose this project because it meets its requirement of a 25% minimum ROCE and the company is targeting a turnover of around INR300 crore from this project in the first phase.<\/li>\n<\/ul>\n<ul>\n<li>[00:24:06] Rohit Nagraj from Centrum Broking asked about the capex plan for FY25 and beyond. Maulik Patel MD said the company is implementing a value chain, starting with chlorotoluene and CPVC expansion. This should result in 75% of chlorine consumption happening in-house by 2026, with the possibility of increasing it to 85%. A final decision will be announced once the Board approves.<\/li>\n<\/ul>\n<ul>\n<li>[00:29:23] Niraj Mansingka at White Pine enquired how much value does India import in chloromethane products and what is MFL\u2019s plan for investment in the chloromethanes derivative market. Maulik Patel MD answered that chloromethane is used in pharma, refrigerant gas, and PTFE applications. Refrigerant gas R32 is the next-generation and MDC consumption is increasing. India used to import chloroform and MDC, but domestic production is rising which may reduce imports.<\/li>\n<\/ul>\n<ul>\n<li>[00:37:35] Darshil Jhaveri with Crown Capital asked about the revenue jump expected in FY24 as all new capacities are live for nearly two quarters. Maulik Patel MD said MFL expects volume growth in FY24 to be between 15-20%, which will drive value growth of 20% or more.<\/li>\n<\/ul>\n<ul>\n<li>[00:38:52] Riya Mehta from Aequitas asked about the current power cost for caustic soda production and has the high-cost inventory of coal from last quarter been resolved. Sanjay Jain CFO said coal prices have increased by 30% compared to last year and have cooled off by 50% from QtoQ. Power generation costs have followed the same trend.<\/li>\n<\/ul>\n<ul>\n<li>[00:45:06] Amarnath Bhakat at Ministry of Finance of Oman asked how has the reopening of China\u2019s economy impacted MFL in terms of raw material availability, product demand, and prices. Sanjay Jain CFO said Chinese chemical production has not recovered after the Chinese New Year, which has an indirect impact on India, though duty protections have helped to protect margins and business.<\/li>\n<\/ul>\n<ul>\n<li>[00:51:37] Amarnath Bhakat at Ministry of Finance of Oman asked can the stability of the unit cost of power be assumed if long-term power contracts are secured from solar or renewable sources. Maulik Patel MD said caustic soda is considered a raw material, not a utility, so the cost of power affects its price and must be passed on.<\/li>\n<\/ul>\n<ul>\n<li>[00:59:39] Rohit Nagaraj with Centrum asked about the proposed ban on chloromethane by the U.S. EPA and how will it impact the chloromethanes market in India and globally. Maulik Patel MD said that chloromethane industry in India is unaffected by the US situation of transitioning from R22 to R32, as India will continue to use R32 until 2032.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Meghmani Finechem Limited (MFL) Q4 FY23 Earnings Concall Management Update: [00:03:44] MFL said its expansion plans such as additional capacity of CPVC resin, chlorotoluene&#8217;s value chain and an R&amp;D center are moving according to schedule and will drive growth in FY25. Q&amp;A Highlights: [00:07:21] Dhruv asked about the performance of chlorine in [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":125416,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"Meghmani Finechem Limited Q4 FY23 Earnings Conference Call Insights #MFL #Q4 #FY23 #Earnings #Stocks ","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,5753],"tags":[8519,10169,9044],"class_list":["post-144225","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-industrials","tag-chemicals","tag-earnings","tag-industrial-products"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":131568,"url":"https:\/\/alphastreet.com\/india\/meghmani-finechem-limited-q1-fy23-earnings-conference-call-insights\/","url_meta":{"origin":144225,"position":0},"title":"Meghmani Finechem Limited Q1 FY23 Earnings Conference Call Insights","author":"Praveen","date":"July 22, 2022","format":false,"excerpt":"https:\/\/youtu.be\/XQtFG6HWQB8 Key highlights from Meghmani Finechem Limited (MFL) Q1 FY23 Earnings Concall Management Update: 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. Q&A Highlights: Deepak Poddar from B&K\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":128594,"url":"https:\/\/alphastreet.com\/india\/meghmani-finechem-limited-q4-fy22-earnings-conference-call-insights\/","url_meta":{"origin":144225,"position":1},"title":"Meghmani Finechem Limited Q4 FY22 Earnings Conference Call Insights","author":"Praveen","date":"April 26, 2022","format":false,"excerpt":"https:\/\/youtu.be\/eqk613DQQcc Key highlights from Meghmani Finechem Limited (MFL) Q4 FY22 Earnings Concall Management Update: MFL closed the year with highest ever revenue and PAT of INR1,551 crores and INR253 crores respectively, which is attributed to a volume growth of 20% and higher realization for all the products. Q&A Highlights: Manish\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":126675,"url":"https:\/\/alphastreet.com\/india\/meghmani-finechem-limited-q3-fy22-earnings-conference-call-insights\/","url_meta":{"origin":144225,"position":2},"title":"Meghmani Finechem Limited Q3 FY22 Earnings Conference Call Insights","author":"Praveen","date":"January 25, 2022","format":false,"excerpt":"https:\/\/www.youtube.com\/watch?v=RbT4g_BKNWM Key highlights from Meghmani Finechem Limited (MFL) Q3 FY22 Earnings Concall Management Update: MFL achieved highest ever nine-month topline of INR152 crores. 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Corporate Participants: Maulik Patel\u00a0--\u00a0Chairman and Managing Director Sanjay Jain\u00a0--\u00a0Chief Financial Officer Analysts: Rohan Ohri\u00a0--\u00a0Emkay Global Financial Services -- Analyst Dhruv Joglekar\u00a0--\u00a0Vasuki India Fund -- Analyst Bobby J\u00a0--\u00a0Falcon Investments -- Analyst Amit Vora\u00a0--\u00a0Homoeopathic Clinic -- Analyst Unidentified Participant\u00a0--\u00a0-- Analyst\u2026","rel":"","context":"In &quot;Earnings Call Transcripts&quot;","block_context":{"text":"Earnings Call Transcripts","link":"https:\/\/alphastreet.com\/india\/category\/transcripts\/"},"img":{"alt_text":"Earnings Conference Call Transcript","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":131665,"url":"https:\/\/alphastreet.com\/india\/meghmani-finechem-limited-mfl-q1-fy23-earnings-concall-transcript\/","url_meta":{"origin":144225,"position":4},"title":"Meghmani Finechem Limited (MFL) Q1 FY23 Earnings Concall Transcript","author":"IRS_INDIA","date":"July 21, 2022","format":false,"excerpt":"Meghmani Finechem Limited (NSE: MFL) Q1 FY23 Earnings Concall dated Jul. 21, 2022 Corporate Participants: Milind Kotecha\u00a0--\u00a0Investor Relations Officer Maulik Patel --\u00a0Chairman and Managing Director. Sanjay Jain\u00a0--\u00a0Chief Financial Officer Analysts: Monali Jain\u00a0--\u00a0Go India Advisors -- Analyst Deepak Poddar\u00a0--\u00a0Sapphire Capital -- Analyst Riya Mehta\u00a0--\u00a0Aequitas Investment -- Analyst Amarnath Bhakat\u00a0--\u00a0Ministry of Finance,\u2026","rel":"","context":"In &quot;Earnings Call Transcripts&quot;","block_context":{"text":"Earnings Call Transcripts","link":"https:\/\/alphastreet.com\/india\/category\/transcripts\/"},"img":{"alt_text":"Earnings Conference Call Transcript","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":138809,"url":"https:\/\/alphastreet.com\/india\/meghmani-finechem-limited-mfl-q3-fy23-earnings-concall-transcript\/","url_meta":{"origin":144225,"position":5},"title":"Meghmani Finechem Limited (MFL) Q3 FY23 Earnings Concall Transcript","author":"IRS_INDIA","date":"January 19, 2023","format":false,"excerpt":"Meghmani Finechem Limited (NSE: MFL) Q3 FY23 earnings concall dated Jan. 19, 2023 Corporate Participants: Maulik J. Patel\u00a0--\u00a0Chairman and Managing Director Sanjay Jain\u00a0--\u00a0Chief Financial Officer Milind Kotecha\u00a0--\u00a0Head of Investor Relations Analysts: Rohan Ohri\u00a0--\u00a0Emkay Global Financial Services Ltd -- Analyst Riya Mehta\u00a0--\u00a0Aequitas Investment Consultancy -- Analyst Manish Jain\u00a0--\u00a0Moneylife Advisory Services --\u2026","rel":"","context":"In &quot;Earnings Call Transcripts&quot;","block_context":{"text":"Earnings Call Transcripts","link":"https:\/\/alphastreet.com\/india\/category\/transcripts\/"},"img":{"alt_text":"Earnings Conference Call Transcript","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/144225","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=144225"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/144225\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/125416"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=144225"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=144225"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=144225"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}