Balaji Amines Limited, a leading manufacturer of specialty chemicals has announced its financial results for the quarter and year ended March 31st, 2020.

Revenue from Operations for Q4FY20 stood at Rs. 238.3 crore as compared to Rs. 236.5 crore in Q4FY19. Total volumes stood at 22,146 MT for Q4FY20 as against 21,543 MT in Q4FY19.

Net profit for Q4FY20 was Rs. 32.4 crore as compared to Rs. 27.0 crore in Q4FY19.

Revenue from operations for FY20 stood at Rs. 929.3 crore as compared to Rs. 955.1 crore in FY19. Net profit for FY20 was Rs.113.8 crore as compared to Rs. 118.1 crore in FY19.

The board of directors have recommended final dividend of Rs. 0.60/-per equity share i.e. 30% on face value of Rs. 2/- per share and the same win be payable after it is approved by the shareholders at the ensuing Annual General Meeting.

On the performance, D. Ram Reddy, Managing Director commented, “Despite the lockdown in the second half of the month of March 2020, we are pleased to have registered a robust growth with healthy operating margins. We witnessed increased demand across all our product categories with improved price realizations coupled with benign raw material prices. We are pleased to have maintained our annual EBITDA margin at 20%, despite recording sharp erosion in operating margins in the first quarter of FY20 on account of higher priced inventory from previous quarters.

The company has gradually ramped up the manufacturing of Acetonitrile and will steadily continue to do the same in coming quarters. The margin delta of Acetonitrile continues to remain elevated on account of higher price realization due to supply constraints in global market. We also anticipate steady improvement in capacity utilization of DMF in FY21, if the better pricing being prevalent in the market over last few months continues to exist. Our subsidiary company too witnessed an improved volume offtake which is a good harbinger for subsequent quarters.

COVID-19 related lockdown had no significant impact on our Q4FY20 earnings given that most of our products fall under category of essential commodities. As our product portfolio largely caters to the defensive end-user segments like pharmaceuticals, agrochemicals etc., we are not likely to witness any drastic fall in demand from our end-industry clients. However, the phase-1 of our 90-acre Greenfield Project, is likely to face delays in commencement, due to lockdown led stoppage in construction activities and postponement of shipment of essential machinery and equipments.

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. Our endeavour remains to produce high-quality products which substitute imports, for which we have been continuously undertaking expansions to reinforce our production capacity for future growth. We also plan to steadily expand our reach in the export market over medium to longterm, given the eagerness of global companies to reduce their exposure to Chinese sources of suppliers ”