Meghmani Organics Expects New Plant To Aid Revenue Growth In FY20
The company’s CEO, G Chahal, said stable crude oil prices and currency exchange rates will benefit their pigments business.
Meghmani Organics Ltd. expects its new chloromethane plant in Dahej and additional capacities to translate into higher revenue for the year ending March 2020.
“The plant will start by this month-end and it may take four or five months to stabilise,” G Chahal, chief executive officer of the chemical maker, told BloombergQuint, adding that the plant had a full-year revenue potential of Rs 140 crore. “We will see revenue contribution from ramping up of (the plant’s) caustic soda and hydrogen peroxide capacity by the fourth quarter.”
Chahal said the company’s pigment segment will have a better performance due to crude oil prices and currency exchange rates stabilising.
Raw material prices for pigments is linked to crude oil (price) movement. We weren’t able to catch up and fully pass on the price hikes as we always lag a quarter behind. There is room for pick up in the pigments business as crude has stabilised in the range of $61-70/barrel.G Chahal, Chief Financial Officer, Meghmani Organics
Shares of the company rose as much as 2.3 percent to Rs 68.25 apiece compared with a 0.4 percent fall in the Nifty Index.