Ami Organics Limited reported financial results for the Quarter ended June 30, 2023. The company reported Q1 FY24 net profit at Rs. 16.7 crore compared to Rs. 14.9 crore, reflecting a growth of 12 per cent.  During Q1 FY24, revenue from operations grew by 8.7 per cent YoY to Rs. 142.4 crore. The gross margin for the quarter was at 44.8 per cent as compared to 48.8 per cent in Q1FY23. Lower gross margin for the quarter was due to product mix. EBITDA for the quarter came at Rs. 25.2 crore up 9.7 per cent YoY compared to Rs. 22.9 crore in Q1FY23.   EBITDA margin for the quarter was at 17.7 per cent as compared to 17.5 per cent in Q1FY23. EBITDA margin for the quarter was supressed on account of higher employee cost. PAT margin for the quarter was at 11.7 per cent as compared to 11.3 per cent in Q1FY23

Commenting on results, Naresh Patel, Executive Chairman & Managing Director, Ami Organics Limited, said: “I am extremely pleased that we have been able to deliver sustained growth during the quarter, on the back of deflationary pricing environment in the chemicals industry. Our revenue from operations grew by 9% to Rs. 142 cr. The growth was driven by strong momentum in specialty chemicals business with steady trajectory in the advance pharmaceutical intermediate business. 

Segment wise, I believe advance intermediate business will recover strongly from Q2FY24 onwards whereas we will be commercialising a new product during Q2FY24 in the specialty chemicals segment which will further boost the growth for the segment.

“On the electrolyte business, we are very close to signing contracts with a few customers and details of the same will be shared once we sign the MOU. I would like to mention, the size of these contracts that we are discussing with customers is much larger than what we had anticipated.

“Overall, I believe despite the challenging external environment, we are confident of delivering strong growth with robust margins during the year.”

Key Business highlights:

* Export at 37%; domestic business at 63%

* Export – Exports were lower as for some of the products customer changed the API supplier from overseas to India

Advance Pharmaceutical Intermediates

* Fermion contract: Validation batches have been sent. We are expecting to start the production from Q4FY24 onwards.

Specialty Chemicals

* Strong volume traction in Methyl Salicylate and Parabens. Post introduction of flow chemistry process for Methyl Salicylate, we are now globally competitive.

Electrolyte additives update

* Electrolyte samples approved at plant trial scale by 6 customers.

* We are in advance stages of negotiation of contract with couple of customers.

Capex Update

* Civil work for production and admin block completed. Tank farm and warehouse is more than 60% completed. Machinery installation is in progress in block-1.

* Started the recruitment process for the new facility. On track to commence the production activity in Q4 FY24.