Balaji Amines drops as Q1 PAT slides 18% YoY to Rs 43 cr

Balaji Amines tumbled 5.59% to Rs 2,258.85 after the company's consolidated net profit declined 17.90% to Rs 43.29 crore in Q1 FY25 as against Rs 52.73 crore posted in Q1 FY24.

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 companys 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 companys 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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