By: ICN Bureau
Last updated : May 12, 2022 9:27 am
The company has posted net profit of Rs.259.69 crores for the 9 months period ended December 31, 2021.
Balaji Amines Limited has posted net profit of Rs. 89.55 crores for the period ended December 31, 2021 as against net profit of Rs. 79.75 crores for the period ended September 30, 2021. It posted net profit of Rs.74.97 crores for the period ended December 31, 2020.
Balaji Amines has reported total income of Rs. 565.83 crores during the period ended December 31, 2021 as compared to Rs. 528.67 crores during the period ended September 30, 2021. It reported total income of Rs.392.63 crores during the period ended December 31, 2020.
Balaji Amines has reported total income of Rs.1546.44 crores during the 9 months period ended December 31, 2021 as compared to Rs.899.89 crores during the 9 months period ended December 31, 2020.
The company has posted net profit of Rs.259.69 crores for the 9 months period ended December 31, 2021 as against net profit of Rs.153.69 crores for the 9 months period ended December 31, 2020.
On the performance D. Ram Reddy, Managing Director, commented, “The demand remained sluggish due to the unavailability of KSMs for same of our matching products at our customers’ end in Q3FY22. However, this constraint is now over, and we are witnessing a substantial pick-up in these products. Our sales volumes were also affected on account of temporary shutdowns we had to undertake at our DMF and Acetonitrile plants for the debottlenecking exercise, which was completed in November 2021.
As announced earlier, our capex for DMC plant under Phase 1 of our 90-acre Greenfield Project (Unit IV) is nearing completion and we hope to commence operations during Q1FY23. The capacity of this plant would be about 10,000 to 12,000 tons per annum. The company would be the sole manufacturer of this product in India and currently the annual domestic demand stands at about 8,000 to 9,000 tons which is completely met by imports.
We are confident to achieve capacity utilization of 60-70% at our DMC plant in our first year of operation itself. DMC is used in the production of Polycarbonate and Lithium Batteries – the consumption of which will exponentially grow in India backed by various government incentives. Also, we see encouraging scope for exporting DMC to outside markets.
Secondly, the prices of DMF continue to remain healthy and with the completion of the debottlenecking exercise, the capacity utilization of this plant has increased substantially, the full impact of which is likely to be visible in Q4FY22 and next financial year. We expect the capacity utilization of DMF plant to increase from about 34% in 9MFY22 to 70-80% in coming quarters.
The prices of acetic acid continue to remain elevated which has eroded the margins of Acetonitrile. However, over medium to long term we foresee a substantial demand for this product as ‘China Plus One’ strategy takes centre stage and the PLI incentives provided by the Government of India gives further impetus leading to substantial capex by pharmaceutical and agrochemical companies. Also, for our new Acetonitrile plant (having capacity of 50 TPD) under Phase 2 expansion of our Greenfield Project, we plan to undertake production through a new technology, which will address the adverse impact of higher prices of acetic acid and shall lead to healthy operating margins. This plant is likely to get commissioned by the mid of FY24.
The products of our subsidiary company – Balaji Specialty Chemicals Private Ltd. – continue to witness robust demand and higher price realization. Unavailability of key raw materials dissuaded us from operating the subsidiary plant at full capacity. However, from the month of January the supply bottlenecks have eased, and we expect to operate the subsidiary plant at 70-80% capacity in the next fiscal year. We also expect the margins to strengthen at the subsidiary level as the production gets ramped up and we anticipate achieving annual turnover of about Rs. 475 - 500 crore. We also aim to increase the share of exports from our subsidiary plant to about 25-30% going forward from about 18% in 9MFY22.
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 over the next fiscal year. Also, next year we expect substantial improvement in volume offtake from improved capacity utilization at our Ethylamines (new plant), DMF and Acetonitrile plants as well capacity additions on account of our new DMC plant.
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.”