Manali Petrochemicals Reports Improved Profitability Amid Challenging Market Conditions

Manali Petrochemicals Limited (MPL), a leading petrochemical manufacturer and a subsidiary of AM International, Singapore, has announced its financial results for the quarter ended June 30, 2024.

The company recorded a consolidated total income of ₹246 crore and a profit after tax of ₹13 crore for the quarter, compared to ₹262 crore and ₹1.30 crore in the preceding quarter. While revenue remained relatively stable, a significant improvement in profitability was achieved.

Despite facing headwinds such as persistent dumping of imported materials and escalating raw material costs, MPL has demonstrated resilience through effective cost management and operational synergies. The company’s global footprint, with two overseas operating entities, has been instrumental in mitigating the impact of these challenges.

MPL’s Board of Directors has recommended a dividend of ₹0.75 per equity share, subject to shareholder approval at the upcoming Annual General Meeting. If approved, the dividend will be paid within 30 days of the AGM.

Mr Ashwin Muthiah, Chairman of MPL and Founder Chairman of AM International, Singapore, said, “Despite facing severe pricing pressures due to external factors beyond our control, our profitability has increased manifold while maintaining similar sales as last quarter. Moving forward, our focus will be on enhancing and protecting our bottom line through continuous operational efficiency and leveraging synergies from our international subsidiaries. The encouraging performance of our overseas subsidiaries positions us to introduce their products and services to local markets. Amid ongoing geopolitical conflicts and tensions, we remain cautiously optimistic about our future.”

Mr R Chandrasekar, Managing Director of MPL, commented, “Our quarterly performance, with improved profitability despite a slight dip in sales, clearly demonstrates the effectiveness of our cost management and operational synergies. While India faces severe dumping pressures affecting the industry, we are hopeful for substantial policy-level remedial measures to protect local manufacturers. Concurrently, our UK subsidiaries are performing well and significantly contributing to our bottom line. Moving forward, we will continue to safeguard our market share through superior R&D and strategic product and solutions development.”

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