Balaji Amines Limited, a leading manufacturer of Aliphatic Amines and speciality chemicals in India, specialized in manufacturing of Methyl Amines, Ethyl Amines, Derivatives of Amines and other Specialty Chemicals, announced its consolidated Q3 FY23 revenue at Rs. 588.47 crore, up 3.5%. 

 

For Q3FY23, Amines volumes stood at 6,082 MT, Amines Derivatives volumes stood at 8,587 MT, and Specialty Chemicals volumes stood at 13,478 MT. 

 

EBITDA for Q3 FY23 was Rs. 130.30 crore, as compared to Rs. 158.98 crore in Q3 FY22. EBITDA margin for Q3 FY23 stood at 22.14% as against 27.96% in Q3 FY22. The fall in operating margin was primarily on account of degrowth in the pharma and API sector. PAT for Q3 FY23 was Rs. 83.79 crore, as compared to Rs. 101.59 crore in Q3 FY22. On a standalone basis, Balaji Amines is a zero-debt company.

 

On the performance, D. Ram Reddy, Managing Director, Balaji Amines said, "Despite headwinds in pharma and API industries globally, we have delivered decent results. The fall in the margins was primarily on account of degrowth in the pharma and API sector. Revenues from the newly commenced plants will start contributing to our top line in the coming quarters, which in turn can improve the margin profile of the company from Q1 FY24."

 

"Coming to our Capex plans for the future growth journey, we would start initiating Capex for installation of the below plants in the next 2 to 3 years subject to the Government approvals/permissions/environment clearance: Methylamine plant with a capacity of 40,000 tons; N-Butylamines plant with a capacity of 15,000 tons per annum; DMAHCL plant with a capacity of 12,000 tons; Acetonitrile plant with a capacity of 15,000 tons; and DMF plant with a capacity of 30,000 tons," commented Reddy. 

 

"The total capex will be about Rs. 400-500 crore. Out of above capex, the company has also started construction for Methyl Amines plant which is expected to be commissioned during 2nd half of FY 2023-24 and the production of other plants will commence over next 2 to 3 years subject to the Government approvals / permissions / environment clearances. The company has received environmental clearance for N-Butylamines plant apart from other products which will be taken up immediately as the detailed engineering is already completed and project is ready for execution," said Reddy. 

 

"For our new Acetonitrile plant, we plan to undertake production through a new upgraded technology, where we envisage a cost advantage, which will enable us to withstand higher prices of acetic acid and shall lead to healthy operating margins. 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 for our legacy products in FY24," added Reddy.