Intraday Spotlight: Balaji Amines rises 7 per cent after reporting robust Q3 numbers

The company’s DMC plant is also nearing completion and it would make Balaji Amines the sole manufacturer of this product in India.

Leading manufacturer of Aliphatic Amines and Speciality Chemicals in India, Balaji Amines was among the top gainers on the S&P BSE 500 intraday today after reporting a strong set of numbers for the quarter ended December 2021. 

On a quarterly consolidated front, Balaji Amines’ revenue from operations stood at Rs 564.90 crore, up by 44.06 per cent as compared to Rs 392.13 crore in Q3FY21. Total volumes stood at 27,589 MT for Q3FY22 as against 31,993 MT in Q3FY21. On a sequential basis, however, revenue growth was muted at 7.45 per cent as the company had to shut down the plants of DMF and Acetonitrile for a brief period to carry out the de-bottlenecking exercise, which was completed in November 2021.

On the operational front, the company recorded a profit of Rs 158.73 crore, up 35.24 per cent YoY and 20.87 per cent QoQ, although margins did contract by 183 bps to 29.93 per cent during the quarter. The fall was due to lower operating leverage on account of a dip in volume offtake. During the quarter, PAT was recorded at Rs 101.59 crore, up 28.75 per cent YoY and 15.36 per cent QoQ. 

The Capex for the company’s Di Methyl Carbonate (DMC) plant under Phase 1 of the 90-acre Greenfield Project (Unit IV) is nearing completion, and the company aim to commence operations during Q1FY23. The capacity of this plant is expected to be around 10,000 to 12,000 tons per annum and it would make the company the sole manufacturer of this product in India. At present, the annual domestic demand stands at about 8,000 to 9,000 tons which are completely met by imports. The management is confident of meeting capacity utilization of 60-70 per cent at its DMC plant in its first year of operation itself.

DMC is used in the production of Polycarbonate and Lithium Batteries – the consumption of which will exponentially grow in India backed by various government incentives. Balaji Amines is also seeing encouraging scope for exporting DMC to outside markets. 

At 11.45 am on Thursday, the stock of Balaji Amines was seen trading at Rs 3618.30, up by 7.49 per cent or Rs 252.20 per share against a 0.73 per cent decline on the benchmark index. The 52-week high of the scrip is recorded at Rs 5,220 and the 52-week low at Rs 1,150 on the BSE.