Page 142 - CW E-Magazine (19-11-2024)

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QUARTERLY PERFORMANCE

Cheap imports drag down revenue and profi ts

at Manali Petro

Manali Petrochemicals Ltd. (MPL), pany has suffered a loss on standalone on our expansion plans remain our top
a leading petrochemical manufacturing basis for reasons beyond its control, priorities,” said Mr. Ashwin Muthiah,
company and part of AM International, the continued operational performance Chairman, MPL.
Singapore, has reported total income on of the overseas subsidiaries helped the
standalone basis of Rs. 169-crore dur- company to achieve a positive position “The continued surge in import
ing Q2FY25, as against Rs. 183-crore on consolidated basis during the quarter dumping from neighbouring countries
for the previous quarter. The company under review,” it said in a statement. has created challenging market dyna-
incurred a loss Rs. 11-crore for the mics. Our inability to pass on prices to
quarter under review, as against profi t “This quarter’s performance refl ects our customers has further impacted our
of Rs. 2-crore in the previous quarter. persistent macro-economic pressures, performance and margin. However, our
including rising raw material costs and overseas subsidiaries’ strong contribu-
The revenue and margin were con- competition from cheaper imports. On tions underscore the potential for long-
tinued to be affected mainly on account a positive note, contributions from our term growth and will help bolster our
of dumping of imported materials at overseas subsidiaries have supported performance moving forward,” noted
cheaper prices, coupled with rising raw our bottom line. Looking ahead, main- Mr. R. Chandrasekar, Managing Director,
materials costs. “Although the com- taining cost effi ciencies and progressing MPL.

CHLORINE DERIVATIVES

DCM Shriram to invest in plants for aluminium

chloride and calcium chloride

The Board of Directors of DCM in Special Purpose Vehicles (SPVs) to
Shriram Ltd. have approved investment establish a 68-MW wind-solar hybrid
in projects for making aluminium chlo- renewable power project. Additionally,
ride facility and granulated calcium the company sanctioned a capital ex-
chloride. penditure of Rs. 23-crore for a renew-
able power project in Kota, Rajasthan.
The board gave the green light to
a substantial capital expenditure of Strong fi nancial performance
Rs. 310-crore for setting up the new The company showed a 95%
chemical facilities in Jhagadia, Bharuch, hydrin will provide further stability and year-on-year increase in consolidated
including a 100-tpd (tonnes per day) strengthen the business. The business net profi t to Rs. 62.92-crore during
aluminium chloride facility and a 225-tpd will continue to look for new growth Q2FY25. Total income also saw a
granulated calcium chloride facility. opportunities in upstream as well as signifi cant rise of 11.81%, reaching
These projects will get commissioned downstream areas including adjacen- Rs. 3,183.98-crore in Q2 FY25, com-
in Q1 FY27 and will ensure a chlorine cies,” it said in a presentation. pared to Rs. 2,847.42-crore in the corres-
sink of ~225-tpd, the company said. ponding quarter of the previous year.
Strategic expansion into renewable
During the quarter, the company energy In a move to reward shareholders,
operationalised its hydrogen peroxide In a signifi cant move towards sus- the company declared an interim divi-
plant, while the epichlorohydrin pro- tainability, DCM Shriram’s board ap- dend of 100% (Rs. 2 per equity share)
ject is expected to be commissioned by proved multiple strategic investments, for FY25, with the record date set for
Q4 FY25. “Commissioning of projects including an equity investment of up to November 11, 2024, and payment
like hydrogen peroxide and epichloro- Rs. 60-crore for acquiring a 28% stake scheduled before November 28, 2024.

142 Chemical Weekly November 19, 2024

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