Pharmaceuticals company Ami Organics announced Q2FY24 results: Revenue from operations for Q2FY24 grew by 17.3% YoY to Rs 1,724 million The Gross margin for Q2FY24 was at 41% as compared to 48% in Q2FY23. Lower gross margins were on account of high price erosion and higher sales of low-margin products EBITDA for Q2FY24 came at Rs 248 million down 11.8% YoY compared to Rs 281 million in Q2FY23 EBITDA margin for Q2FY24 was at 14.4% as compared to 19.1% in Q2FY23, the drop of 470bps was on account of gross margins as well as higher employee cost, which was driven by annual increments, ESOP, and hiring for the Ankleshwar unit Adjusted PAT for Q2FY24 was Rs 147 million, down 22.6% YoY as compared to Q2FY23. Export at 54%; domestic business at 46% Commenting on results, Naresh Patel, Executive Chairman & Managing Director, Ami Organics, said, “I am pleased to report a 17% YoY growth, with revenue from operations of Rs 172 crore for Q2FY24, despite facing downward pricing pressures. Even as we navigated the low-demand landscape and delivered growth, our margins took a hit this quarter driven by high pricing pressure and higher sales of low-margin products. Still, our strong order book points to a robust second half of FY24. On the business front, Advance Pharmaceutical business delivered steady growth of ~8% YoY, even as a global customer delayed the launch in certain markets impacting our growth for Q2FY24. Further extending our relationship with Fermion, we have signed one more contract for Advanced Intermediates for their product taking total products under the CDMO contract to 3, enhancing revenue visibility for the coming years. On the specialty chemicals side, we delivered strong 72% growth YoY, driven by robust volume. The launch of a new UV Observer product is set to enhance our portfolio, contributing to our financials from Q3FY24. In our commitment towards sustainability and operational cost reduction, the board has approved investment in a 16 MW solar power plant which along with an already work-in-progress 5 MW solar power plant will nullify our electricity expense once fully operational. Deferment in product launch in certain markets by a global customer coupled with pricing pressure due to oversupply from China is expected to have some impact on the numbers and even though we are expecting to deliver robust H2FY24, overall, we are modifying our growth target from 22-25% for the full year to 18-22% growth for FY24.” Result PDF
Pharmaceuticals company Ami Organics announced Q1FY24 results: Revenue from operations for Q1FY24 grew by 8.7% YoY to Rs 1,424 million The Gross margin for Q1FY24 was at 44.8% as compared to 48.8% in Q1FY23. The lower gross margin for Q1FY24 was due to the product mix. EBITDA for Q1FY24 came at Rs 252 million up 9.7% YoY compared to Rs 229 million in Q1FY23. EBITDA margin for Q1FY24 was at 17.7% as compared to 17.5% in Q1FY23. EBITDA margin for Q1FY24 was suppressed on account of higher employee costs. PBT for Q1FY24 was at Rs 223 million up 9.8% YoY as compared to Q1FY23 PAT for Q1FY24 was at Rs 167 million up 12% YoY as compared to Q1FY23 PAT margin for Q1FY24 was at 11.7% as compared to 11.3% in Q1FY23 Commenting on results, Naresh Patel, Executive Chairman & Managing Director, Ami Organics, said, “I am extremely pleased that we have been able to deliver sustained growth during the quarter, on the back of deflationary pricing environment in the chemicals industry. Our revenue from operations grew by 9% to Rs 142 crore. The growth was driven by strong momentum in the specialty chemicals business with a steady trajectory in the advanced pharmaceutical intermediate business. Segment-wise, I believe advanced intermediate business will recover strongly from Q2FY24 onwards whereas we will be commercialising a new product during Q2FY24 in the specialty chemicals segment which will further boost the growth for the segment. In the electrolyte business, we are very close to signing contracts with a few customers, and details of the same will be shared once we sign the MOU. I would like to mention, the size of these contracts that we are discussing with customers is much larger than what we had anticipated. Overall, I believe despite the challenging external environment, we are confident of delivering strong growth with robust margins during the year.” Result PDF