Balaji Amines Limited, a leading manufacturer of aliphatic amines & speciality chemicals in India, announced its consolidated financial results for the quarter ended September 30th, 2023.

During Q2 FY24, Balaji Amines posted revenue from operations at Rs. 387 crore, as compared to Rs.  469 crore in Q1FY24. EBITDA for Q2FY24 was Rs. 61 crore, as compared to Rs. 104 crore in Q1FY24. EBITDA margin for Q2FY24 stood at 16% as against 22% in Q1FY24. PAT for Q2FY24 was Rs. 36 crore as compared to Rs.  68 crore in Q1FY24.

 Total volumes stood at 27,613 MT for Q2FY24 as against 26,820 MT in Q1FY24. For Q2FY24, amines volumes stood at 8,092 MT, amines derivatives volumes stood at 10,236 MT and specialty chemicals volumes stood at 9,285 MT.

On the performance, D. Ram Reddy, Managing Director, commented, “In Q2, we faced an unprecedented phase of challenges in the Specialty Chemical industry, primarily due to a rapid change in input costs which resulted in lower landed costs of imported competitor products impacting Balaji Amines ability to charge a fair price for our products. This has been further exacerbated by destocking by global players in the Indian market.

“In addition, we observed headwinds affecting the global pharma API and Agro industries. The decline in profit margins can be largely attributed to the contraction in this sectors, a trend we have observed to some extent in the Q3 as well. However, we firmly believe that the present challenges represent a temporary hurdle that is poised to stabilize over the course of the next two quarters.

“We express confidence in our prospects for the medium to long term. Our ongoing projects are progressing as planned, all while maintaining a debt-free approach. We are aiming to introduce distinctive products, enrich our product portfolio, and establish state-of-the-art manufacturing facilities. Maintaining our leadership in Amines and their derivatives within India has been fundamental to our success. Our extensive range of specialty chemicals continues to distinguish us from our competitors.

“We are pleased to report that our Unit 4 Projects are on track and are expected to be commissioned as scheduled. Looking forward, we hold a positive outlook for stronger long-term opportunities. We anticipate the fiscal year 2024-25 to be marked by growth and increased prospects as market conditions improve. Our ongoing reliance on our inherent strengths and competencies continues to guide us as we navigate market complexities and strive for greater excellence as a leader in Amines and Specialty Chemicals.”

Update on New Projects and New Proposed Products/Projects

• n-Butylamine: The new expansion project work is progressing at brisk speed. The Plant is expected to be commissioned during the 4th Quarter of FY 2023-24.

• Methylamine: The project implementation is progressing as planned. The project is likely to be commissioned around the 2nd quarter of FY 2024-25.

• Dimethyl ether: The project for manufacture of DME is initiated to be set up in Unit-IV and the detailing and engineering is completed and the company has started civil works. The Plant is expected to be commissioned during the first half of FY 2024-25.

• The Company is proposing to take up the following projects at Unit-IV:

N-Methyl Morpholine (NMM) - 3000 TPA

N-(n-butyl) Thiophosphoric triamide (NBPT) - 2500 TPA

Pharmapure Povidone (PVP K-30) - 4000 TPA

• The Company is proposing to go for a Solar Power Plant near Solapur, Maharashtra.

• The Company has already initiated a Solar power generation plant for captive consumption at Unit IV on all the sheds / Buildings for about 1600 KW costing approximately Rs. 7.50 crores for the compliances of Netzero under ESG to reduce carbon footprint.