Shares of Balaji Amines zoomed 20 per cent to hit a new high of Rs 1,514 on the BSE in Tuesday's intra-day trade after its profit more-than-doubled to Rs 70.16 crore in the October-December quarter (Q3FY21) on the back of healthy revenue. The specialty chemicals company had posted a profit of Rs 26.73 crore in the year-ago quarter.
Total income increased 63.7 per cent year-on-year (YoY) to Rs 366.85 crore as sales volume jumped 34 per cent YoY. Ebitda (earnings before interest, taxes, depreciation, and amortisation) was at Rs 98.77, up 116 per cent YoY. Ebitda margin improved 647 basis points (bps) to 26.92 per cent from 20.45 per cent in the previous year quarter.
The improvement in operating margins was primarily on account of improvement in operating leverage due to increase in volume offtake and better price realisation.
The management said the trend of increased demand across the company’s product portfolio continues as there is sustained growth of Indian pharma industry on account of ‘China Plus One’ business strategy being adopted by Western companies. The price realisations have also continued to remain healthy.
The company is also exporting few of its products like EDA, DETA from its subsidiary and Morph line to China, which previously used to get dumped in India. The prices of Diethyl Formamide (DMF) have risen sharply because of supply-demand mismatch, leading to improved capacity utilization of DMF plant, the management said.
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.
At 09:30 am, the stock was trading 15 per cent higher at Rs 1,454 on the BSE as compared to a 0.37 per cent gain in the S&P BSE Sensex. A combined around 500,000 equity shares have changed hands on the counter so far on the NSE and BSE.