Balaji Amines Limited., a Indian organic chemicals manufacturer announced its results for the second quarter ended Sept 30, 2022.
Q2 Results- QoQ
The company’s net profit declined 24.7% to Rs 925.6 million for the period ended Sept 30, 2022 as against net profit of Rs 1.23 billion for the previous quarter.
Net sales decreased 6.6% to Rs 6.3 billion during the period ended Sept 30, 2022 as compared to Rs 6.74 billion during the previous quarter.
Q2 Results- YoY
The company reported 16.1% growth in net profit of Rs 925.6 million for the period ended Sept 30, 2022 as against net profit of Rs 797.52 million for the prior-year quarter.
Net sales increased 18.9% to Rs 6.3 billion during the period ended Sept 30, 2022 as compared to Rs 5.29 billion during the prior-year quarter.
On the performance, Mr. D Ram Reddy, Managing Director, commented, “Despite headwinds in pharma and API industries globally, we have delivered decent quarterly results. The improvement in the margins was primarily on the account of better product mix. Additionally, some of the older plants along with newly started plants had improved capacity utilisation, which resulted in better operating leverage. Revenues from the new plants will start contributing to our top line in the coming quarters, which in turn can improve the margin profile of the company.”
“As announced earlier, phase 1 of the 90-acre Greenfield Project (Unit IV) has been completed and the DMC/PC and PG Plant started commercial production by the end of September 2022. This is with installed annual production capacity of 15,000 tons of Dimethyl Carbonate (DMC)/Propylene Carbonate (PC) and 15,000 tons Propylene Glycol (PG). In the first year of operations, the company is confident of achieving capacity utilization of 60-70% at the DMC/PC and PG plant,” Ram Reddy commented.
“Our new Acetonitrile plant, we plan to undertake production through a new upgraded technology, where we envisage to have cost advantage, which will enable us to withstand higher prices of acetic acid and shall lead to healthy operating margins,” he added.
H1 Results- YoY
The company reported 26.7% growth in net profit to Rs 2.15 billion for the period ended Sept 30, 2022 as against net profit of Rs 1.7 billion for the prior-year 1st half period.
Net sales increased 32.7% to Rs 13.05 billion during the period ended Sept 30, 2022 as compared to Rs 9.83 billion during the the 6 months period last year.
Balaji Amines Limited is a leading player in the Indian chemical industry engaged in the manufacture and sale of organic chemicals such as methyl amines, ethyl amines, derivatives of amines.