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Balaji Amines Ltd.

BSE: 530999 Sector: Industrials
NSE: BALAMINES ISIN Code: INE050E01027
BSE 00:00 | 18 May 2965.00 -52.40
(-1.74%)
OPEN

3080.00

HIGH

3080.00

LOW

2958.00

NSE 00:00 | 18 May 2962.85 -65.40
(-2.16%)
OPEN

3060.00

HIGH

3073.05

LOW

2955.40

OPEN 3080.00
PREVIOUS CLOSE 3017.40
VOLUME 4586
52-Week high 5220.00
52-Week low 2417.55
P/E 31.20
Mkt Cap.(Rs cr) 9,607
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 3080.00
CLOSE 3017.40
VOLUME 4586
52-Week high 5220.00
52-Week low 2417.55
P/E 31.20
Mkt Cap.(Rs cr) 9,607
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Balaji Amines Ltd. (BALAMINES) - Chairman Speech

Company chairman speech

* We persistently kept strengthening our capabilities while creating value for ourstakeholders. Even amid a tough and challenging year we retained our leadership positionas the largest amines and speciality chemicals manufacturers.

Dear Shareholders

Before beginning my annual address i would like to convey my deepest sympathies toeveryone impacted by the outbreak of the Covid-19 pandemic. During this time of greatstress and uncertainty i sincerely pray for everyone's good health and safety.

CY 2020 brought about a significant global challenge. Apart from the immediate andsevere health concerns the pandemic's impact has been much broader on lives and economiesworldwide. Many economies slipped into a technical recession - the largest since the GreatDepression of CY 1929. Spontaneous and imperative restrictions like lockdowns suspensionof cross-border trade production and travel were imposed across many countries. The yearwas further marked by several other marquee events like the ongoing US-Sino tradeconflict volatile crude oil prices and higher commodity prices.

India was among the first few countries to impose one of the strictest and prolongedlockdowns to curb the virus from spreading. Today as i write this communique we areengulfed in the second wave of Covid-19. The total number of infected cases today aresignificantly higher than they were during the first wave last year. Back then the strictmeasures undertaken for necessitating social distancing and safety severely curtailedeconomic activities. it eventually led to the economy's contraction by 23.9% in the Q1 of2020-21. The Government announced various stimulus packages to mitigate an economicfallout. These packages in the form of fiscal and monetary policies aimed at providingrelief. The highlights of these economic measures were ‘' 20 Lakh Crore'package released under the Aatmanirbhar Bharat campaign aimed to make india selfreliantand support all walks of society in general.

With the phased unlocking there was a visible uptick in economic activities. Thiseasing of restrictions gradual resumption of business coupled with the fiscal stimuluspackage led to some recovery. As a result the economy's contraction narrowed to 7.5% inthe Q2 of 2020-21. There was an evident drop in the number of Covid-19 cases and slowlywe started seeing a rise in pent-up demand. These developments made india the world'ssecond economy to post a positive GDP in the Q3 of 2020-21.

Let me share how we coped with the Covid-19 situation and our team's resilient actionsleading to sustainable performance Quarter on Quarter.

End-user Industry

The pharma segment is one of the major consumers of amines and speciality chemicals.The outbreak of the pandemic swelled up the demand for pharmaceutical APis thus leadingto an increase in the demand for amines and speciality chemicals. Additionallyagrochemical manufacturers also witnessed a rise in demand. Despite the supply chaindisruptions and labour migration issues there was an uptick in the manufacturingactivities resulting in robust pent-up demand from the end-users.

Safety First

with all the issues swamping the economy our prerogative was to safeguard ouremployees their families along with our other stakeholders. We firmly believe inemployees being at the heart of any organisation. with this core ethos we undertookseveral workplace measures to safeguard our team which included:

5 Adherence to various lockdown and safety mandates and guidelines issued by theCentral and State Government and other local bodies from time to time

5 usage of technology to facilitate remote work for our employees thereby assuringtheir safety by lowering their chances of getting impacted

5 Maintenance of all social-distancing norms encouraging wearing of masks and use ofsanitisers and following all the safety protocols

5 Maintaining quarantine facilities at units 5 Providing medicines and preventive stepsat our facilities

a Taking care of hospitalisation and medial support through doctors consulatation

Stellar Performance

Despite a difficult year for the economy we managed to clock better financial metrics.We attribute these results to the resilience of our business model and the tremendous hardwork of our employees. They are the people who have helped us wither this crisis and drivethrough swiftly on an excellent performance. Despite challenging conditions we managedhigher revenues EBITDA levels and even better margins during the year. we accredit thisimprovement to better operating leverage of all our plants and increase in volume offtakecoupled with higher price realisations.

Let me share some of the highlights of our financial performance during the year2020-21:

a Revenue from operations stood at Rs.1227.78 Cr. in 202021 against Rs.919.05 Cr. inthe previous year - indicating a growth of 33.59%

3 EBIDTA for 2020-21 stood at Rs.338.65 Cr. registering a growth of 78.21% over theprevious year

3 Net Profit was recorded at Rs.231.71 Cr. in 2020-21 witnessing an increase of103.71% over the previous year

a Return on Capital Employed (ROCE) was clocked at 28.88% compared to 18.81% in theprevious year - an increase of 1007 bps

Our subsidiary company Balaji Speciality Chemicals Private Limited (BSCPL) alsowitnessed a robust financial performance. This was on account of higher demand fromvarious end-user industries and we are looking forward to better utilisation of plantcapacity in the years to come.

Expansion Plans

About 75% of our revenues are generated from the pharma and agrochemical industries.with the commencement of operations at our new state-of-the-art plant of Ethylamines withan installed capacity of 16500 tons per annum (part of Phase 1 of our 90-acre GreenfieldProject (Unit IV) at Solapur) the Company now has the largest installed capacity ofEthylamines in India at 22500 tons per annum.

The de-bottlenecking of our Acetonitrile plant got delayed due to lack of skilledmanpower because of the pandemic- led restrictions. However the construction of our newplant for Di-methyl Carbonate (DMC) in Phase I of Greenfield Project (Unit IV) isprogressing as envisaged. We are expecting to commence production of DMC by the end of2021-22. We have undertaken a total capex of Rs.156 Cr. in Phase I of our GreenfieldProject upto March 2021. Further Rs.160 Cr. will be used for capex during the FinancialYear towards DMC Methylamines in Unit IV & Captive Power Plant in Unit Ill.

Looking at the growing demands we further intend to setup a new plant with aninstalled capacity of 40000 TPA for Methylamines under Phase-II of the Greenfield Projectat Unit-lV.

Outlook

CY 2021 looks strong from the overall growth perspective. Massive inoculation drivesand various government initiatives are vitally continuing to hold the economy steady.These positive developments have led many world- renowned agencies and forums toanticipate a V-Shaped recovery for India along with higher growth in CY 2021. However weneed to move ahead with cautious optimism owing to the second wave of Covid-19. Thesubsequent curbs by the various state governments may dampen prospects by furtherimpacting the recovery.

Conclusion

On a concluding note l would like to mention that the passion and dedication of ourteam members amid such tense times has helped us progress despite adversities. l extend myheartfelt gratitude to each member of Balaji Amines Ltd. As we move ahead l assure youthat we will continue pursuing our growth trajectory while focusing on the investments inR&D capability and capacity enhancements. we will continue providing newer and bettersolutions and higher quality products to our customers persistently. l also take thisopportunity to thank all our stakeholders. Their continued trust drives us to focus oncreating value for them while delivering what we promised.

we provided the best support and hospital treatment to those members who were infectedwith Covid-19. But unfortunately two members of our staff lost their lives to Covid-19.We pray for their departed souls and extend our wholehearted condolences to theirfamilies. Amid these challenging times we pray for you all to stay safe and healthy. Takecare!

Regards

A. Prathap Reddy

Executive Chairman.

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