On full year basis, the company's net profit declined 18.7% to Rs 250 crore in FY23 as compared with Rs 308 crore in FY22. Net sales fell 2.5% year on year to Rs 2,557 crore in FY23 over FY22.

Agrochemicals, constitutes approximately 76% of the overall company's revenue during FY23. Despite of multiple unfavourable global macro-economic challenges, the segment's EBITDA margins stood at 19.6% in FY23 vs 20.2% in FY22. The company is well positioned to benefit from ‘China plus one' strategy of global players coupled with enhanced capacity eyeing on new molecules in agrochemicals.

Pigments, constitutes around 24% of the overall company's revenue. Currently, pigment industry is going through a challenging phase resulting slow export demand and contraction in prices. During FY23 the pigment division's performance was adversely impacted due to liquidation of high-cost inventory. The pigment division recovery is likely to be expected from the coming quarters.

Finance cost stood at Rs 64.41 crore in FY23, steeply higher from 9.33 crore in FY22. The company continues to maintain prudent risk management policy; 88% of the revenue comes from exports of which 55-65% of foreign currency exposure is covered by the way of natural hedge in the form of imports, forward cover and borrowing in foreign currency.

The company said that during FY23 there was a huge volatility in currency movement which has led to MTM gain on receivables and MTM loss on foreign currency borrowing. As per accounting standard requirements, MTM gain of Rs 76 crore on receivables has been shown as other income. MTM loss on foreign currency borrowing Rs 46 crore has been accounted as finance cost. Out of Rs 46 crore MTM loss Rs 32 crore is unrealised. During the FY23, there is net foreign currency gain of Rs 30 crore.

Ankit Patel, chief executive officer (CEO) said, "It gives me immense pleasure to share that Meghmani Organics was ranked 1 Fortune Next 500 company by Fortune India. Despite challenging global macro-environment and inflationary pressure, Meghmani Organics top-line grew by 2.5% YoY to Rs 2,557 crore in FY23. We are adding meaningful capacities and capabilities in both pigment and agrochemical businesses gearing towards future growth. The Phase I of TIO2 plant (16,500 MTPA) is getting stabilised and it will add meaningful contribution in FY24. The company aims to commission its captive power plant in Q3 FY24 and double its TIO2 plant capacity to 33,000 MTPA in Phase II.

The multi purpose plant (MPP) is getting stabilised and is expected to make notable contribution in FY24. The capex towards MNCL for manufacturing Nano Urea (Liquid) fertilizer is progressing as planned and the commercial production is expected in Q4FY24. MNCL eyes annualized revenue of Rs 1,000 crore from Nano Urea plant. The long-term supply contract for 5 years with reputed multinational customer for agro products will add Rs 160 crore annually to the top-line."

The company's board approved final dividend of Rs 1.40 per equity share.

Meghmani Organics is amongst the leading diversified chemicals company with a presence in the pigments and agrochemicals business.