Manali Petrochemicals locked in the upper circuit on excellent Q2 performance
For the reported quarter, consolidated PAT rose 457% YoY, sales are up 100% YoY.
Manali Petrochemicals reported a 457% year-on-year increase in its consolidated net profit to Rs 117 crore for the quarter ended September.
Consolidated total revenue from operations, rose 100% on YoY to Rs 440 crore for the reported quarter, which is the best quarterly performance in the company's history.
EBITDA rose 288% YoY to Rs 163 crore with a margin expansion of 2800 bps on a YoY basis standing at 37% for the quarter ended September. This increase is due to a decrease in the cost of materials used for manufacturing.
Commenting on the performance Muthukrishnan Ravi, MD of MPL and CEO, Petrochemicals Division of AM International Group said, “During the quarter demand for all the products improved post lifting of the restrictions across the country. The all-around increase was seen in product prices and margins, and the quarter recorded historically highest turnover. We expect to maintain a similar performance in the coming periods, subject to imports into India, which has remained subdued for over a year due to global market conditions”
Manali Petrochemicals Limited (MPL) is a petrochemical company developing innovative products, since 1986, that find application in a variety of industries such as appliances, automotive, bedding, food and fragrances, furniture, footwear, paints and coatings, and pharmaceuticals.
Major domestic manufacturer of Propylene Glycol and Polyol
The company operates in the Polyurethanes industry and specializes in the manufacture of propylene glycol, polyether polyol and related substances. It is the only domestic manufacturer of Propylene Glycol. Also, it is the first and largest Indian manufacturer of Propylene Oxide, the input material for the many derivative products.
Propylene Glycol (PG) is widely utilized in pharmaceuticals, food and flavour and fragrance industries and also for the manufacture of polyester resins, carbonless paper and automobile consumables like brake fluid and anti-freeze liquid. Some of the major applications of PG include medicines, canned food, body sprays, perfumes, cosmetics, soaps and detergents. The off-take of PG for industrial purposes is generally low due to the availability of alternate cheaper materials.
We see that chemical as a sector is playing out quite well in the past few months, and this company has utilized the industry tailwinds and posted stellar numbers.
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