Key Financial Highlights
- Balaji Amines Q2FY22 Revenue up by 86.76% at Rs 528.67 Crore;
- EBITDA up by 80.48% at Rs 134.26 Crore;
- Net Profit up by 99.25% at Rs 88.07 Crore
- Total Income for Q2FY22 grew by 55.09% to Rs 439.33 crore as compared to Rs 283.28 crore in Q2FY21. The revenue surged on account of higher volumes driven by the commissioning of additional Ethyl amines capacity of 16,500 MT in last quarter, improved capacity utilization and overall healthy demand across our product basket.
- Total volumes stood at 23,604 MT for Q2FY22 as against 23,151 MT in Q2FY21.
- For Q2FY22,
- Amines volumes stood at 5,861 MT
- Amines Derivatives volumes stood at 8,261 MT
- Specialty Chemicals volumes stood at 9,482 MT
- EBITDA for Q2FY22 was Rs 102.06 crore as compared to Rs 72.22 crore in Q2FY21, posting a growth of 41.32%. EBITDA margin for Q2FY22 was at 23.23%, as compared to 25.49% in Q2FY21.
- The margins remained a little subdued due to significant increase in prices of key raw materials, which are now being passed on to end customers after a lag of 3-4 weeks
- PAT for Q2FY22 was Rs 69.59 crore, up by 46.01%, as compared to Rs 47.66 crore in Q2FY21. Diluted EPS for Q2FY22 stood at Rs 21.48 per equity share.
- Revenue from Operations for H1FY22 stood at Rs 833.58 crore, up by 67.98%, as compared to Rs 496.25 crore in H1FY21. EBITDA for H1FY22 was up by 74.18% at Rs 218.98 crore as compared to Rs 125.72 crore in H1FY21.
- EBITDA margin for H1FY22 was at 26.27%, up by 94 basis points, as compared to 25.33% in H1FY21. PAT for H1FY22 witnessed a jump of 83.95% to Rs 151.41 crore from Rs 82.31 crore in H1FY21. Diluted EPS for H1FY22 stood at Rs 46.73 per equity share.
- Consolidated Performance Highlights for Q2FY22 & H1FY22
- Revenue from Operations for Q2FY22 stood at Rs 528.67 crore, up by 86.76%, as compared to Rs 283.07 crore in Q2FY21. Total volumes stood at 28,361 MT for Q2FY22 as against 25,499 MT in Q2FY21.
- EBITDA for Q2FY22 was Rs 134.26 crore, up by 80.48%, as compared to Rs 74.39 crore in Q2FY21.
- EBITDA margin for Q2FY22 was at 25.40% as against 26.28% in Q2FY21. PAT for Q2FY22 was Rs 88.07 crore, witnessing an increase of 99.25%, as compared to Rs 44.20 crore in Q2FY21. Diluted EPS for Q2FY22 stood at Rs 24.61 per equity share.
- Revenue from Operations for H1FY22 stood at Rs 980.61 crore, up by 93.32%, as compared to Rs 507.26 crore in H1FY21. EBITDA for H1FY22 was up by 116.11% at Rs 278.55 crore as compared to Rs 128.89 crore in H1FY21. EBITDA margin for H1FY22 was at 28.41%, up by 300 basis points, as compared to 25.41% in H1FY21. PAT for H1FY22 witnessed an increase of 144.73% to Rs 185.46 crore from Rs 75.78 crore in H1FY21. Diluted EPS for H1FY22 stood at Rs 52.51 per equity share.
On the performance Mr. D. Ram Reddy, Managing Director commented, “Post the swift weakening of COVID-19 pandemic across India, the overall demand for our product basket remained healthy despite the temporary reduction in demand for certain products from pharmaceutical clients on account of Chinese API KSM unavailability due to challenges in ocean freight logistics. The prices of some of the key raw material prices witnessed significant increase which impacted the operating margins of the business in the current quarter. However, the transition period of 3-4 weeks is now over, and we have started passing on the increase in cost prices to end customers. While anticipating favourable pricing and better product mix going ahead, we expect operating margins to inch upwards in the H2FY22, from the current levels.
During Q2FY22, the higher price of acetic acid gave us perfect opportunity to undertake the long pending activity of the de-bottlenecking exercise of our Acetonitrile plant. With this exercise now complete, the plant capacity has now increased from 9 TPD (tons per day) to 18 TPD and we now expect gradual ramp-up in capacity utilization in H2FY22. As disclosed in previous quarter, we also plan to undertake capex of approximately Rs. 70 to 80 crore, by using a different technology for additional Acetonitrile plant having capacity of 50 TPD, at our 90-acre Greenfield Project (Unit IV). This plant is likely to get commissioned during FY23.
We had to shut down our DMF plant in the first week of October 2021 due to a small incident which had led to minor leakages. We took this opportunity to also undertake debottlenecking exercise which will enhance the operating capacity of the plant from present 50 TPD to 75 TPD. We expect the DMF plant to re-commence operations within first week of November 2021. The capacity utilization of DMF plant was about 53% in Q2FY22 and 37% in H1FY22 (versus 35% in FY21) and we expect the capacity utilization to steadily increase on account of robust demand and continued higher price realisations.
Our subsidiary company – Balaji Specialty Chemicals Private Ltd. – continues to witness robust demand and higher price realization for its products. The capacity utilization increased from 42% in Q1FY22 to 67% in Q2FY22 with average production of 1,675 tons per month in the second quarter. The subsidiary company has been facing shortage of raw materials which is imported. Upon smoother accessibility to the raw materials in coming quarters, we expect rapid increase in capacity utilization in H2FY22 and over the next fiscal year. We also aim to increase the share of exports from our subsidiary plant to about 25-30% going forward from about 15% in H1FY22
We shall continue to witness improved demand across our product portfolio as the dependability on Indian pharma and agrochemicals industry increases on account of ‘China Plus One’ business strategy being adopted by western companies. Our thrust remains to expand our portfolio of key derivative products alongside entering newer specialty chemicals to gain from both vertical integration and operating efficiencies.”
