Balaji Amines Q3FY17 Concall Summary

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Financial Highlights

Balaji Amines QrFY17 results
Balaji Amines QrFY17 results
  • Profit before tax has increased by 62% at 97.96% and PAT has also registered an increase of 78% to end at 67.70 Crores as compared to last year for the same period. For the three months quarter, the volume growth is 13% from Q3FY16 to Q3FY17.
  • Gross sales of 534.16 Crores were made which is a an increase of 4.93% and volumewise the growth is up by 10% from last year 9 months result
  • Exports have also shown a jump of 13%
  • From the results it looks like that pricing has stabilized.
  • EBITDA margins are not showing much difference in this quarter because of methanol price increase and some additional costs like diwali bonus (Rs. 1 crore), fuel price increase, freight on account of exports (Rs. 1 Crore). Certain maintenance cost of 1.5 to 2 Crores was also done in the plant.
  • Going forward these expenses will see rationalization as the company is trying to pass on some part of the cost to end product pricing.
  • EBITDA is expected to be between 20-23% by FY17 end and is expected at these levels or even better in the next Financial year.

Hotel Business

  • This segment has started registering profit. Cash profit of 90-93 lakhs was added to bottom line.
Balaji Amines Segement information

Future Plans and projects

  • Morpholine Plant

    • Morpholine plant with annual capacity of 7000 tonnes is also expected to start after the first quarter of next year in May or so.
    • Morpholine plant is expected to add about 70-75 Crores to the top line riding on capacity utilization of 50% in the first year.
  • Acetonitrile Plant
    • Acetonitrile plant with capacity of 18000 tonnes per annum is a little delayed but is expected to start by December 2017. Company is waiting for environmental clearances.
    • The demand for Acetonitrile is low in India but very healthy outside. Company is expecting to expand its exports with this product. Though in first year only 8000-9000 tonnes is the target.
    • The end product price cyclically hovers between Rs 120-200 and if it touches the higher spectrum then the results can improve significantly

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