Balaji Amines Limited has posted a net profit of Rs 79.7521 crore for the quarter ended September 30, 2021, against Rs 45.7587 crore in the corresponding quarter of the previous year (YoY) and Rs 90.3842 crore in previous quarter (QoQ).

For the quarter ended September 30, 2021(Q2 FY2022), the company's total income was Rs  528.6720 crore, against Rs 283.0724 crore in the corresponding quarter of the previous year (YoY) and Rs 451.9412 crore in previous quarter (QoQ).

For the 6 Months period ended September 30, 2021, the company's total income was Rs 980.6132 crore, against Rs 507.2582 crore in the previous year (YoY).

The net profit was at Rs 170.13 crore for the 6 months period ended September 30, 2021 compared to Rs 78.72 crore in the previous year (YoY).

On the performance D. Ram Reddy, Managing Director commented, “Post the swift weakening of COVID-19 pandemic across India, the overall demand for our product basket remained healthy despite the temporary reduction in demand for certain products from pharmaceutical clients on account of Chinese API KSM unavailability due to challenges in ocean freight logistics. The prices of some of the key raw material prices witnessed significant increase which impacted the operating margins of the business in the current quarter. However, the transition period of 3-4 weeks is now over, and we have started passing on the increase in cost prices to end customers. While anticipating favourable pricing and better product mix going ahead, we expect operating margins to inch upwards in the H2FY22, from the current levels.

During Q2FY22, the higher price of acetic acid gave us perfect opportunity to undertake the long pending activity of the de-bottlenecking exercise of our Acetonitrile plant. With this exercise now complete, the plant capacity has now increased from 9 TPD (tons per day) to 18 TPD and we now expect gradual ramp-up in capacity utilization in H2FY22. As disclosed in previous quarter, we also plan to undertake capex of approximately Rs. 70 to 80 crore, by using a different technology for additional Acetonitrile plant having capacity of 50 TPD, at our 90-acre Greenfield Project (Unit IV). This plant is likely to get commissioned during FY23.

We had to shut down our DMF plant in the first week of October 2021 due to a small incident which had led to minor leakages. We took this opportunity to also undertake debottlenecking exercise which will enhance the operating capacity of the plant from present 50 TPD to 75 TPD. We expect the DMF plant to re-commence operations within first week of November 2021. The capacity utilization of DMF plant was about 53% in Q2FY22 and 37% in H1FY22 (versus 35% in FY21) and we expect the capacity utilization to steadily increase on account of robust demand and continued higher price realisations.

Our subsidiary company – Balaji Specialty Chemicals Private Ltd. – continues to witness robust demand and higher price realization for its products. The capacity utilization increased from 42% in Q1FY22 to 67% in Q2FY22 with average production of 1,675 tons per month in the second quarter. The subsidiary company has been facing shortage of raw materials which is imported. Upon smoother accessibility to the raw materials in coming quarters, we expect rapid increase in capacity utilization in H2FY22 and over the next fiscal year. We also aim to increase the share of exports from our subsidiary plant to about 25-30% going forward from about 15% in H1FY22.

We shall continue to witness improved demand across our product portfolio as the dependability on Indian pharma and agrochemicals industry increases on account of ‘China Plus One’ business strategy being adopted by western companies. Our thrust remains to expand our portfolio of key derivative products alongside entering newer specialty chemicals to gain from both vertical integration and operating efficiencies.”