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Balaji Amines drops after Q3 PAT slides 18% YoY

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Capital Market
Last Updated : Feb 07 2023 | 6:31 PM IST

Balaji Amines fell 4.62% to Rs 2194.95 after the company's consolidated net profit fell 17.52% to Rs 83.79 crore on 3.48% increase in total income to Rs 588.47 crore in Q3 December 2022 over Q3 December 2021.

Revenue from operations for Q3FY23 stood at Rs 588.47 crore, up by 3.48%, as against Rs 568.70 crore in Q3FY22.

Total volumes stood at 28,147 MT for Q3FY23, up 2.02% as against 27,589 MT in Q3FY22. For Q3FY23, Amines volumes stood at 6,082 MT, Amines Derivatives volumes stood at 8,587 MT and Specialty Chemicals volumes stood at 13,478 MT.

EBITDA fell 18.04% YoY to Rs 130.30 crore in Q3 FY23. EBITDA margin for Q3FY23 stood at 22.14% as against 27.96% in Q3FY22. The fall in operating margin was primarily on account of degrowth in pharma and API sector.

D. Ram Reddy, managing director, commented, "despite headwinds in pharma and API industries globally, we have delivered decent results. The fall in the margins was primarily on account of degrowth in pharma and API sector. Revenues from the new commenced plants will start contributing to our top line from coming quarters, which in turn can improve the margin profile of the company from Q1FY24."

"We would start initiating capex for installation of the below plants in next 2 to 3 years subject to the government approvals/permissions/environment clearance. The total capex will be about Rs. 400-500 crore."

"Upon smoother accessibility to the raw materials for matching products at our clients' end in coming quarters, we expect to witness an increase in capacity utilization for our legacy products in FY24."

Balaji Amines is a leading manufacturer of Aliphatic Amines in India. Broadly, the company is specialized in manufacturing methyl amines, ethyl amines, derivatives of specialty chemicals and natural product and its business is broadly classified into three segments - amines, specialty chemicals and derivatives.

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First Published: Feb 07 2023 | 11:05 AM IST

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