Meghmani Organics falls 2.5% on Q4 net loss of ₹40 lakh

Earnings before interest, tax, depreciation, and amortisation (EBITDA) fell 88% YoY to ₹10.1 crore while the EBITDA margin declined to 2.5% from 14.8% in the same period of the previous fiscal.

The firm booked a net loss of ₹57 crore during the fiscal year 2024 as against a net profit of ₹250 crore in the previous fiscal. Revenue from operations fell 40% YoY at ₹1,540 crore during the year. EBITDA fell 97% YoY to ₹9 crore while the EBITDA margin declined to 0.61% as compared to 14.2% in the previous fiscal.

The company attributed lower revenue and EBITDA to lacklustre demand and lower price realisations across markets. The firm said it de-stocked inventory worth ₹70 crore which impacted profitability.

The crop protection segment contributes 70% to the company’s revenue while the pigments segment accounts for the remaining 30%. The company said that the crop protection segment performance was impacted as the global demand continued to remain sluggish owing to high channel inventory and high-interest rate scenarios. Meanwhile, the pigments segment was impacted by the prevailing price erosion in the industry due to demand contraction globally, it said.

Ankit Patel, chairman and managing director at Meghmani Organics said that on a full-year basis, the firm’s revenue and profitability were impacted by continued sluggish global demand, lower product price realisations across markets, and inventory destocking.

Shares of Meghmani Organics have risen by 4% since the start of the year. Over the past year, the stock has fallen by over 1%.