Ami Organics Limited (AMI) has reported revenue from operations for Q1 FY23 grew by 15.8% YoY to Rs. 131 crore whereas Profit After Tax (PAT) for the quarter was at Rs. 14.9 crore up 8.3% on YoY basis. 

The gross margin for Q1 FY23 improved to 48.8%, an increase of 572 bps on YoY basis and 467 bps on a sequential basis. The margin expansion was driven by a better product mix, cost optimization measures, process improvement measures, and the use of new technology. The PAT margins for the quarter were at 11.3% as compared to 12.1% in Q1FY23.

Commenting on results, Naresh Patel, Executive Chairman & Managing Director, Ami Organics Limited said, “I am happy to share that we have entered the new financial year on a positive note amidst a challenging global environment. Our revenues for the quarter grew steadily at 16% on a YoY basis to Rs. 131 crore. This was driven by the export market and specifically innovator-driven business. Our gross margins improved for the quarter due to a better product mix, cost optimization measures, process improvement measures, the use of new technology, and most importantly our ability to pass on the incremental cost to our customers. The EBITDA margins remain stable on a sequential basis weighed down by higher energy prices and lower EBITDA of the specialty chemicals business. I am confident that margins will improve over the course of the year."

Electrolyte additive samples are with customers across the world at various stages and I am hopeful that we will see the commercialization of the product towards the end of this year, commented Patel. 

"We are also planning to launch two new products under the import substitute business vertical which are in the agrochemicals space. I believe we will see the commercialization of the same in the 2nd half of FY23," said Patel.

"Overall, even though we are seeing some demand rationalization for the pharmaceutical industry, our core products continue to see strong demand and that makes me optimistic about delivering sustainable growth for the financial year 2023,” added Patel.

The company has received environmental clearance. Excavation work is completed and civil construction has started and the company has started ordering machinery for the plant.