Balaji Amines Limited, a leading manufacturer of Aliphatic Amines & Speciality Chemicals in India, specialized in manufacturing of Methyl Amines, Ethyl Amines, Derivatives of Amines and other Specialty Chemicals, announced its unaudited financial results for the quarter ended June 30th, 2023.

Consolidated Performance Highlights for Q1FY24

Revenue from Operations for Q1FY24 stood at Rs. 469.32 crore, as compared to Rs. 674.86 crore in Q1FY23. Total volumes stood at 26,820 MT for Q1FY24 as against 27,358 MT in Q1FY23. For Q1FY24, amines volumes stood at 6,757 MT; amines derivatives volumes stood at 8,288 MT and specialty chemicals volumes stood at 11,775 MT

EBITDA for Q1FY24 was Rs. 103.69 crore, as compared to Rs. 219.48 crore in Q1FY23. EBITDA margin for Q1FY24 stood at 22.09% as against 32.52% in Q1FY23. PAT for Q1FY24 was Rs. 67.68 crore as compared to Rs. 148.04 crore in Q1FY23. On standalone basis, Balaji Amines is a zero-debt company.

On the performance D. Ram Reddy, Managing Director, said: “In Q1, we faced an unprecedented phase of challenges in the Specialty Chemical industry, primarily due to a rapid global demand contraction. This has been further exacerbated by an oversupply situation in China, driven by weak domestic demand, inventory correction across the globe and slowdown in several developed markets due to stock piling. These factors have impacted the offtake and sustenance of realisation, especially in the Speciality Chemicals Market.

However, we firmly believe that this is a temporary setback and our long-term prospects remain robust. Our performance in Q1 aligns with the industry's subdued trends. We're dedicated to maintaining a customer-centric approach, consistently delivering value. This commitment underscores our dedication to serving our customers' needs effectively.

Our medium-to-long term plans are progressing as intended. Our new projects are on track, and we're working towards their successful completion without incurring any debt. We're focusing on identifying unique products, further enhancing our offerings and contributing to India's self-sufficiency goals through world-class manufacturing facilities.

Our continued leadership in Amines and their derivatives within India has been a cornerstone of our success. Our comprehensive range of specialty chemicals sets us apart from competitors. Our Unit 4 phase 2 & 3 projects are shaping up as a world-class facility, set to begin phased production from 2nd half of FY 2023-24 onwards.

We're confident about stronger long-term opportunities. We anticipate FY25 to be marked by growth and opportunities as market conditions improve. The promising future is driven by India's potential on the global stage. We are well-positioned to be a gamechanger and a performance leader as market dynamics shift. Our inherent strengths and competencies continue to guide us in navigating market complexities, propelling us toward greater excellence as leader in Amines and Specialty Chemicals.”

Update on the Capital Expenditure

* N-Butylamines plant with a capacity of 15,000 tons per annum. The new expansion project works are progressing well. The Plant is expected to be commissioned around Dec-2023.

* Methylamine plant with a capacity of 40,000 tons. The project implementation work is started. The project is likely to be commissioned around Jun-2024.

New Projects under pipeline

* Di Methyl Either (DME) with a capacity of 1,00,000 tons per annum a new age Gas which has application in various fields such as replacement of LPG for fuel and Aerosol usage demand of which is being met by LPG so far from imports. The company is working on various other application and usage for replacing LPG. The project is likely to be commissioned during the end of FY 2025.

* DMAHCL plant with a capacity of 7,500 tons