EBITDA fell 20.7% to Rs 61 crore during the period under review. EBITDA margin stood at 11.1% in Q3 FY23 lower than 12.1% in Q3 FY22.

Agrochemicals segment constitutes 75% of the overall company's revenue. In this segment, the company was able to maintain EBITDA margins of 19.2% during this quarter (against 17.5% in Q3FY22) despite adverse global macro challenges. The company is well positioned to benefit from 'China plus one' strategy of global players coupled with capex plans eyeing on new molecules in agrochemicals.

Pigments constitutes 25% of the overall company's revenue. Currently pigment is witnessing slow export demand and contraction in prices due to challenging global macro environment. During the quarter pigment performance has been adversely impacted due to liquidation of high-cost inventory. We expect the recovery in the demand in the pigment division in the next few quarters.

Commenting on this quarter's performance, Ankit Patel, CEO said: "the commercial production of the agrochemicals new Multi Product Plant was commenced in Q3 FY23 and plant is getting stabilised. It will add meaningful contribution from the next financial year. During the quarter, the company has entered into long term supply contract for 5 years with reputed Multinational Customer for its Agro Products. Total value of the contract is approximately Rs. 800 Cr. Also, the company shall foray into Nano Urea (Liquid) fertilizer through our wholly owned subsidiary Meghmani Crop Nutrition Ltd (MCNL) for which the company will incur a capex of INR 150 crores for setting up the plant in Gujarat with annual capacity of 5 crore bottles (~500 ml) per year. The plant will commence commercial production from Q4FY24. MNCL aims to achieve a topline of INR 1,000 crores on an annualized basis. One of the essential developments is that on the pigment side, the Phase 1 of the Titanium Dioxide plant with 16,500 tons capacity was commissioned on 18th January 2023. The team is working towards stabilizing the plant and the Phase 2 capex plan of doubling TiO2 capacity to 33,000 tons p.a. along with captive power plant is expected to be completed in Q3 FY24 at capex of Rs.375 crore."

"We are confident about the long-term goals for both business verticals and our competent human capital is swiftly moving towards to materialize the company's long-term goals. The company continues to delight its esteemed clients with a diversified product portfolio and quality products," he added.

Meghmani Organics is amongst the leading diversified chemicals company with a presence in the pigments and agrochemicals business. The company garners about 80% of its topline from the export markets as on FY22.