Manali Petrochemicals Q1 profit surges 349%

The Indian polyols and propylene oxide producer recorded consolidated net profit of INR 643.6 million ($7.3 million) for the three months ended June 30, compared with INR 143.4 million in the same period last year.

Revenue from operations increased 17% to INR 2.75 billion from INR 2.35 billion, while total income rose 19% to INR 2.88 billion.

Profit before tax increased 323% to INR 845.3 million from INR 199.6 million. The company recorded no exceptional items during the latest quarter, indicating that the rise resulted from its underlying operations rather than a one-time gain.

Manali Petrochemicals’ standalone business delivered an even larger improvement. Standalone net profit increased to INR 555.2 million from INR 30.2 million, a rise of approximately 1,739%. Standalone revenue from operations grew 40% to INR 2.29 billion.

The group’s cost of materials consumed increased to INR 1.68 billion from INR 1.29 billion. This was partly offset by a INR 470.6 million favorable movement in inventories of finished goods, traded goods and work in progress.

Manali Petrochemicals manufactures propylene oxide, propylene glycol, polyether polyols, polyester polyols and related products. Its materials are supplied to industries including flexible and rigid polyurethane foam, automotive, appliances, furniture, footwear, coatings and pharmaceuticals.

The company said an insurance claim relating to damage caused by Cyclone Michaung remained under assessment. It is carrying INR 118 million of repair, reinstatement and asset costs as an insurance receivable, after receiving an interim payment of INR 30 million.

Auditors also drew attention to the expired lease for the land occupied by the company’s Unit II plant. Manali Petrochemicals has applied to the Tamil Nadu government for a 30-year renewal and said it remains confident that this will be granted.

Manali Petrochemicals