Balaji Amines Ltd Share Price – NSE /  BSE

Chemicals, Small Cap

Revenue from operations declined 8.85% year on year (YoY) to Rs 346.88 crore in the quarter ended 30 September 2024.

Profit before tax stood at Rs 56.81 crore in September 2024 quarter, registering a growth of 18.33% on YoY basis.

Sequentially, the company’s net profit and revenue from operations in second quarter of FY25 declined 5.34% and 9.84%, respectively.

EBITDA during the quarter stood at Rs 70 crore, down 5.41% as compared to Rs 74 crore in Q1 of FY25. EBITDA margin for Q2FY25 improved to 20% in Q2 FY25 as against 19% reported in the same period a year ago.

Total expenses declined 11.8% YoY to Rs 299.26 crore during the quarter. Cost of raw material consumed stood at Rs 221.88 crore (up 16% YoY) while other expenses were at Rs 78.92 crore (down 7.31% YoY) in Q2 FY25.

The company’s revenue from amines & specilaity chemicals business stood at Rs 348.24 crore (down 8.4% YoY) while income from hotel division was at Rs 7.26 crore (up 7.88% YoY) during the period under review.

Total volumes stood at 26,348 MT for Q2 of FY25, registering de-growth of 6.14% on a sequential basis.

During the quarter, amines volumes stood at 7,616 MT; amines derivatives volumes stood at 8,685 MT and specialty chemicals volumes stood at 10,046 MT.

Looking ahead, Balaji Amines is proposing to set up a plant for manufacture of N-(N-Butyl) Thiophosphoric Triamide (NBPT) with a capacity of 2500 TPA which will be taken up next Financial Year.

Additionally, the company aims to expand its ACN production capacity by setting up a new plant with a 60 MT/day capacity at Unit-III in MIDC, Chincholi. The discussion for transfer of the latest technology (reducing the cost of production) is under final stage and the company may sign the agreement by the end of November 2024. New equipment as per the latest technology will be integrated with the existing ACN plant at Unit-III.

In a separate development, Balaji Speciality Chemicals, a subsidiary of Balaji Amines, has planned a major expansion with an investment of approximately Rs 750 crore. This project will focus on a range of products, including Hydrogen Cyanide (HCN), Sodium Cyanide (NaCN) in both 30% solution and 100% solid forms, EDTA, EDTA-2Na, Benzyl Cyanide (BnCN), Phenylacetic Acid (PAA), and Tri Ethyl Ortho Formate (TEOF)/Tri Methyl Ortho Formate (TMOF).

D. Ram Reddy, managing director, Balaji Amines, said, “In the Q2 quarter, we reported a revenue of Rs 356 crore, achieving an EBITDA margin of 20%. This marks a 110-basis-point improvement over last quarter, reflecting our focus on higher margin products amid a challenging industry environment.

While the broader market experienced pressure in Q2, both the API and agrochemical looks promising over a long term, and we are well-positioned to seize these future opportunities. With our expanded capacities and a sharpened focus on operational efficiency, we are confident in our ability to drive sustainable growth in the coming quarters.

Our recent developments demonstrate significant progress in expanding our production capacity. With the successful commencement of Methylamines production at Unit-IV, our total annual installed capacity has increased from 48,000 MT to 88,000 MT across all three units.

Additionally, Unit-I and Unit-III have achieved BIS Certification for 'Morpholine,' strengthening our quality standards and making us the only BIS-certified Morpholine manufacturer in India. Projects in Electronic Grade DMC, Propylene Glycol Pharma Grade, and Dimethyl Ether are also advancing well, reflecting our commitment to operational excellence. As we look forward, our strong foundation in core capabilities positions us well to navigate industry dynamics and capture growth opportunities.”

Balaji Amines is a leading manufacturer of aliphatic amines in India. Broadly, the company is specialized in manufacturing methyl amines, ethyl amines, derivatives of specialty chemicals and natural product and its business is broadly classified into three segments - amines, specialty chemicals and derivatives.

Shares of Balaji Amines declined 1.92% to Rs 1,996.15 on the BSE.

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Net profit of Balaji Amines rose 18.06% to Rs 40.98 crore in the quarter ended September 2024 as against Rs 34.71 crore during the previous quarter ended September 2023. Sales declined 8.85% to Rs 346.88 crore in the quarter ended September 2024 as against Rs 380.54 crore during the previous quarter ended September 2023.

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Balaji Amines will hold a meeting of the Board of Directors of the Company on 14 November 2024.

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Revenue from operations was at Rs 384.75 crore in Q1 FY25, down 17.02% from Rs 463.67 crore recorded in the corresponding quarter previous year.

Profit before tax slipped 31.85% year on year to Rs 61.58 crore in the quarter ended 30 June 2024.

EBITDA for Q1 FY25 stood at Rs 74 crore, down 28.85% as compared to Rs 104 crore in Q1 FY24. EBITDA margin for Q1FY25 reduced to 19% in Q1 FY25 as against 22% reported in the same period a year ago.

Total expense declined 12.57% YoY to Rs 331.28 crore during the quarter. Cost of raw material consumed stood at Rs 193.16 crore (down 31.04% YoY) while employee benefits expenses were at Rs 19.18 crore (up 7.39% YoY) in Q1 FY25.

The company’s revenue from amines & specilaity chemicals business stood at Rs 385.38 crore (down 16.55% YoY) while income from hotel division was at Rs 6.97 crore (down 1.69% YoY) during the period under review.

Total volumes stood at 28,071 MT for Q1FY25 as against 26,820 MT in Q1FY25, registering a growth of 4.66%.

During the quarter, amines volumes stood at 7,401 MT; amines derivatives volumes stood at 8,299 MT and specialty chemicals volumes stood at 12,371 MT.

On standalone basis, the company’s net profit jumped 17.55% to Rs 40.52 crore in Q1 FY25 as against Rs 34.47 crore posted in Q1 FY24. Revenue from operations was at Rs 332.84 crore in Q1FY25, down 1.30% YoY.

D. Ram Reddy, Managing Director, Balaji Amines, said, “During the first quarter of FY25, we achieved a 5% year-on-year increase in volume, however, our top line has been impacted by decrease in realisation led by decrease in Raw material pricing. We are actively managing these challenges and are confident in our ability to navigate through them while maintaining our profitability.

The Pharma market is showing encouraging signs of improvement, positioning us well for future growth. Although the Agro Chem market has been slow this quarter, we anticipate improvements in the upcoming quarters as market conditions stabilize.

Our capital expenditure projects are progressing as planned. The commissioning of our methylamine plant is on schedule for Q3, and the Dimethyl ether project is expected to be completed by the end of this financial year. These projects are advancing as per the scheduled timelines and are set to significantly enhance our portfolio.

Looking ahead, we maintain a positive outlook for long-term opportunities, anticipating growth and increased prospects in the fiscal year 2024-25. We remain dedicated to delivering value to our shareholders and stakeholders through strategic investments and a continued focus on operational excellence.”

Balaji Amines is a leading manufacturer of aliphatic amines in India. Broadly, the company is specialized in manufacturing methyl amines, ethyl amines, derivatives of specialty chemicals and natural product and its business is broadly classified into three segments - amines, specialty chemicals and derivatives.

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