Mitsu Chem Plast Ltd (MITSU) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day, and welcome to Mitsu Chem Plast Limited conference call. Please stay connected, the call will begin shortly. Participants, you have been connected to Mitsu Chem Plast Limited conference call. Please stay connected, the call will begin shortly.
Moderator: Ladies and gentlemen, good day and welcome to Mitsu Chem Plast Limited Q2 and H1 FY '27 earnings conference call. As a reminder, all participant lines will be in the listen-only mode and there'll be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the
Moderator: 1. Please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Suyash Samant from Stellar IR Advisors. Thank you, and over to Mr. Samant.
Suyash Samant (Stellar IR Advisors): Thank you. Good morning, everyone, and thank you for joining us today. I have with us today the senior management team of Mitsu Chem Plast Limited, Mr. Manish Dedhia, Managing Director and CFO, along with Ms. Asveera Dedhia, VP Finance and Accounts, who will represent Mitsu Chem Plast Limited on the call. The management will be sharing operating and financial highlights for the quarter ended September 30, 2026, followed by a question-and-answer session. Please note, this call may contain some of the forward-looking statements, which are completely based upon the company's beliefs, opinions, and expectations as of today. These statements are not a guarantee of the company's future performance and involve unforeseen risks and uncertainties. The company also undertakes no obligation to update any forward-looking statement to reflect developments that occur after a statement is made. I now hand over the conference to Mr. Manish Dedhia. Thank you, and over to you, sir.
Manish Dedhia (Mitsu Chem Plast Limited): Thank you, Suyash. Good morning to everyone. It is a pleasure to welcome all investors, analysts, and participants to the Mitsu Chem Plast Limited Q2 and H1 FY '27 earnings conference call. We sincerely appreciate your continued interest and support. I will take you through our business performance, the progress across our key segments and the opportunities we are pursuing to drive our next phase of growth. We have built a strong manufacturing platform over more than three decades with expertise across blow molding, injection molding, and customized plastic products. Our manufacturing footprint comprises four facilities with 58 blow molding machines and 22 injection molding machines, with total manufacturing capacity having reached over 36,000-plus metric tons per annum. Our portfolio spans industrial containers ranging from approximately 100 ml to 250 L, serving diverse industries, including chemicals, pharmaceutical, lubricants, edible oil, pesticide, dyes, and speciality chemicals, fragrance, food, and agrochemicals. This diversified end-market exposure provides multiple avenues for growth and reduce dependence on any single industry. We have a diversified customer base of 700-plus customers supported by long-standing relationship with several customers. We also have a strong export presence across 18 countries, providing a broad geographic footprint and access to international market. These capabilities position us well to capture emerging opportunities, particularly from the growing China-plus-one sourcing trend and increasing demand for reliable Indian manufacturing partners. Coming to our product verticals, Q2 FY '27 or H1 FY '27 as per results reflected the scale of our core industrial packaging business along with growth across our emerging segments. Industrial packaging revenue stood at approx 81.88%, hospital furniture parts revenue approx 16.27%, infrastructure furniture and other recorded revenue of approx 1.86% of total revenue for the Q1 FY '26-'27. Industrial packaging remains our core business while the other verticals are helping us diversify our revenue mix. Our priorities include improving manpower, machinery, and material efficiency, increasing the share of higher-margin products, developing new products and molds, particularly for healthcare, and expanding export through new customer engagement and international exhibition. Furnastar, launched in 2025,
Manish Dedhia (Mitsu Chem Plast Limited): Provide a dedicated brand for our hospital furniture parts business. Covering hospital bed com- components, side railings, bed boards, mattress platforms and other healthcare products. We continue to expand the portfolio through new molds and differentiated solution including our patented product with an inbuilt CPR profile. With healthcare infrastructure expanding we see opportunities to grow this business through new product, customer addition and exports. Another key initiative is our entry into intermediate bulk container or IBCs serving industry such as chemical, pharmaceuticals, food and beverages and agrochemicals. Our fully automated Khalapur facility for 1,000 L IBC container is expected to be operational by Q3 FY 2027. The vertical offers attractive potential with capital turnover of approximately 15 times compared with around 8 to 10 times for other products. Packaging will remain our primary growth driver complemented by IBCs and other higher value added product. Our our ambition is to achieve Rs. 1,000 crore in annual revenue by FY '28. We remain focused on capacity expansion, higher value product categories, operational efficiency and expanding our domestic and international presence. I would like to thank our employees, customers, business partner and shareholder for their continued trust and support. With this, I conclude my opening remarks and request Miss. Kashmira Dedhia to take you through the financial performance for the quarter ended September 30, 2026. Thank you.
Asveera Dedhia (Mitsu Chem Plast Limited): Good morning, everyone. Thank you, Manish sir. I'll walk you to our financial performance for quarter two and half one FY '27. Mitsu Chem Plast Limited reported strong improvement in profitability supported by better operating efficiency and improved product mix. For Q2 FY '27, revenue from operations stood at Rs. 9,580.87 lakhs compared to Rs. 9,242.05 lakhs in Q2 FY '26, representing a year-on-year change of 3.67%. EBITDA stood at Rs. 1,188.55 lakhs, up by 101.97% year-on-year with a margin of 12.41%. While profit after tax was Rs. 610.47 lakhs, up 224.12% year-on-year with a PAT margin of 6.37%. For H1 FY '27, revenue from operations stood at Rs. 19,095.40 lakhs, representing a year-on-year change of 7.46%. EBITDA for the first half was Rs. 2,783.03 lakhs, up by 151.40% year-on-year with a margin of 14.34%, while profit after tax stood at Rs. 1,484.30 lakhs, up 364.56% year-on-year with a PAT margin of 7.77%. Coming to our balance sheet and key ratios, our total borrowing stood at around Rs. 9,648.44 lakhs with cash and bank balance of Rs. 6.07 lakhs as of September 2026. Our debt-to-equity ratio stood at 0.76x in H1 FY '27. Our financial portfolio remains focused on improving profitability, strengthening cash flows, efficient working capital management and prudent capital allocation. With that, I conclude my opening remarks. Thank you, and we can now open the floor for questions.
Moderator: Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants, you may press star and one to ask a question. Ladies and gentlemen, you may press star and one to ask a question. First question is from the line of Rishabh from Innovate Financial. Please go ahead.
Rishabh (Innovate Financial): Hi. Good morning, everyone. And sir, thank you for the opportunity. Sir, I had few couple of ques-
Rishabh (Innovate Financial): So, we'll start about the overall demand environment. So, can you please throw some color on the how demand is shaping up across across our key product segments, and also are we seeing any demand from the international markets?
Manish Dedhia (Mitsu Chem Plast Limited): Yeah. Thank you. So, overall demand is very good in the market as as we already say that we are into many of we we are supplying to many of the industries. So, I think one or two industry is down, but otherwise many industries are doing really good. And and the demand is very good. Even if I I look forward a good demand in future also.
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