Balaji Amines Ltd. share price target

Balaji Amines’ revenue missed our estimates due to weak demand. EBITDA missed our estimates due to miss in the revenue and operating deleverage. Adj. PAT missed our estimates due to weak operating performance, higher than expected depreciation expense, and lower-than-expected other income.

Balaji Amines’ revenue missed our estimates due to decline in price realization and volume. EBITDA missed our estimates due to miss in the revenue and operating deleverage.

Balaji Amines missed our revenue estimate significantly due to a steep fall in the price realization. The EBITDA missed our estimates primarily due to a lower-than-expected revenue and higher-than-expected operating expenses.

Balaji Amines revenue beat our estimate by 4.5% due to strong volume growth in Amines and Amine derivatives. The EBITDA beat our estimate primarily due to a beat in revenue and lower-than-expected operating expenses.

For Q2FY24, BLA revenue declined by 39.4% YoY and 17.9% QoQ to INR 3,805 Mn while for H1FY24 revenue declined by 34.9% YoY to INR 8,442 Mn. The sales volume reached 27,613 MT in Q2FY24 as against 28,498 MT in Q2FY23 and 26,820 MT in Q1FY24 which was a decline of 3.1% YoY and a slight increase of 3.0% QoQ. Amines volume stood at 8,092 MT which had a growth of 28.2% YoY and 19.8% QoQ.

The standalone revenue of the company experienced a significant decline, falling by 44% YoY and 16% QoQ, amounting to INR 3470 mn. This decline can be attributed to weak demand in the pharma, API, and agro industries, along with the volatility in key input prices such as ammonia, methanol, and acetic acid.

Dismal operating performance

In Q3FY23, Balaji Amines Ltd reported stable revenue of INR 5,859mn (+3.73% YoY/- 6.62% QoQ). Total volumes were 28,147 MT in Q3FY23, compared to 27,589 MT in Q3FY22 and 28,498 MT in Q2FY23. Such performance was mainly attributable to higher volumes from amines & specialty chemical segments on a YoY basis.

Strong capex led volume surge to drive long-term growth, Maintain BUY

During the quarter, Balaji Amines Ltd reported robust revenue of INR 6,276 Mn (+19.38% YoY / -6.33% QoQ).

During the quarter, Balaji Amines Ltd reported robust revenue of INR 6,702 Mn (+48.70% YoY / -13.97% QoQ)

Record quarter led by volume and realisations, Reiterate BUY

Plant Visit Note

Despite overall consolidated sales volume witnessing a decline of 13.8% to 27,589 mt in Q3FY22, Balaji Amines' revenue from operations grew by a pleasing 44.1% to Rs. 564.90 crs as against Rs. 392.13 crs in the corresponding period in the prior year. The demand for certain products from pharmaceutical clients remained suppressed on account of...

Better utilisation and mix to drive medium term earnings

Balaji Amines Ltd (BAL) witnessed strong top-line growth across standalone Amines business and subsidiary Balaji Specialty Chemicals (BSC).