Struggling against market odds: How Manali Petrochemicals managed Rs. 483cr in H1 FY 2024-25

Manali Petrochemicals Limited (MPL), a prominent petrochemical manufacturer and a key part of AM International, Singapore, reported its unaudited financial results for the first half of the fiscal year 2024-25. Despite external pressures, the company’s consolidated revenue stood at Rs. 483 crore, reflecting its resilience in the face of macroeconomic headwinds.

MPL’s Financial Snapshot and Challenges

The company disclosed a consolidated total income of Rs. 482.79 crore for the six months ending 30th September 2024. This figure marked a decline from Rs. 586.41 crore in the same period last year. Profit before tax (PBT) dropped to Rs. 18.42 crore from the previous H1 figure of Rs. 20.82 crore, while profit after tax (PAT) decreased to Rs. 13.22 crore compared to Rs. 14.97 crore in H1 FY 2023-24.

During the latest quarter, Manali Petrochemicals Limited reported a total standalone income of Rs. 169 crore, down from Rs. 183 crore in the previous quarter. The company faced a standalone loss of Rs. 11 crore, a significant contrast to its Rs. 2 crore profit in the preceding quarter. Key challenges were attributed to a surge in cheaper imports and the escalating costs of raw materials.

Leadership Insights on Strategic Focus

Chairman Ashwin Muthiah highlighted the impact of rising raw material costs and competitive pressures from imported products. He stated that the overseas subsidiaries’ robust performance played a vital role in sustaining the company’s consolidated results. Muthiah reaffirmed the company’s commitment to enhancing cost efficiency and pursuing expansion plans to counter these external challenges.

Managing Director R Chandrasekar pointed out the persistent issues posed by import dumping from neighbouring countries, which has disrupted market dynamics. Chandrasekar also noted that MPL’s challenges were compounded by the inability to transfer price hikes to customers. Despite these setbacks, he expressed optimism due to the positive contributions of the overseas subsidiaries, underscoring their significance for long-term growth and stability.

The Broader Picture for MPL

Manali Petrochemicals Limited, based in Chennai, is renowned for manufacturing key petrochemical products such as propylene glycol and polyols. A subsidiary of the Singapore-based AM International Group, which has a revenue exceeding USD 2 billion, MPL’s global operations include wholly-owned subsidiaries in Singapore and India, as well as step-down subsidiaries in the UK, Germany, and India.

Manali Petrochemicals Limited remains focused on maintaining its customer-centric approach, continuing product customization, and adhering to high safety and environmental standards for the benefit of the community.

Expert Opinions: Navigating Economic and Market Pressures

Analysts have observed that Manali Petrochemicals Limited’s performance mirrors broader industry challenges, including global supply chain issues and pricing volatility. The company’s strategic emphasis on leveraging overseas subsidiaries and enhancing operational efficiencies is seen as a prudent approach during these uncertain times. Financial experts noted that while the near-term outlook may remain pressured, MPL’s diversified presence and strategic priorities could provide stability in the long run.