You are here: Home » Markets » News
Business Standard

Balaji Amines surges 9%, hits new high on robust June quarter results

In Q1FY22, the company reported a consolidated net profit of Rs 97.40 crore as against Rs 31.58 crore in Q1FY21

Balaji Amines Ltd. | Buzzing stocks | Markets

SI Reporter  |  Mumbai 

Amines & Plasticizers to set up subsidiary in UAE

Shares of Balaji Amines rallied 9 per cent to hit a new high of Rs 3,619 on the National Stock Exchange (NSE) in intra-day trade on Tuesday after the company reported robust numbers for the quarter ended June 2021 (Q1FY22), as consolidated profit after tax (PAT) more-than-doubled at Rs 97.40 crore. The company had posted a profit of Rs 31.58 crore in Q1FY21. In the past six months, the stock has zoomed nearly 200 per cent, as against a 5.6 per cent rise in the S&P BSE Sensex.

Balaji Amines is the leading manufacturer of aliphatic amines in India, specialized in manufacturing methyl amines, ethyl amines, derivatives of amines and

The company’s consolidated total income during the quarter under review grew 102 per cent year-on-year (YoY) at Rs 451.94 crore against Rs 224.19 crore in the corresponding quarter of the previous fiscal. Ebitda (earnings before interest, taxes, depreciation, and amortization) margin improved to 31.93 per cent from 24.31 per cent in the year-ago quarter. The stock performance during the quarter was led by robust demand for the company’s products from end-user industries.

The management said the improvement in revenue was on account of an additional income stream coming online with the commencement of 16,500 tons Ethylamines plant under Phase 1 of 90-acre Greenfield project (Unit IV) and improved capacity utilisation. The company’s Ethylamines plant has achieved capacity utilization of over 90 per cent in Q1FY22 itself, the management said.

The company has decided to undertake capex of approximately Rs 70 to Rs 80 crore for additional Acetonitrile plant, having a capacity of 50 TPD (tonnes per day) at its 90-acre Greenfield Project (Unit IV). This plant is likely to get commissioned during FY23, the company said.

“We shall continue to witness improved demand across our product portfolio as the dependability on Indian pharma and agrochemicals industry increases on account of ‘China Plus One’ business strategy being adopted by western companies. Our thrust remains to expand our portfolio of key derivative products alongside entering newer to gain from both vertical integration and operating efficiencies,” D. Ram Reddy, Managing Director of Balaji Amines said.

At 09:36 am, the stock was trading 4.4 per cent higher at Rs 3,465 as compared to a 0.30 per cent rise in the NSE Nifty. A combined around 150,000 equity shares had changed hands on the counter on the NSE and BSE at the time of writing this report.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, August 03 2021. 09:54 IST