Thread by @tycoonmindset05

Balaji Amines Concall was today at 4:00 PM.

Here are key highlights of the Conference Call😀

@drprashantmish6 @punitbansal14

Updates:

-Demand for products like Acetonitrile, DMF, NEP, DMA and TEA elevated as they are intermediates for drugs required for COVID-19 treatment
-Ramp up the production of Acetonitrile to 18-20T per day
-Receive award for export

-Subsidiary performance improved
-Demand for methyl amine increased. Separate plant for Methylamines with installed capacity of 48,000 TPA and 80% of capacity is captively used
-CAPEX of 105 crore completed and expected to commission production of Acetonitrile

-Inventory maintaining for only a month and there wont be any problem
-No change in Amonia price
-Acetonitrile price: 250-280 prices and there has been no major change

DMF:

-India has short supply in this
-Antidumping duty might increase the price of product
-However without antidumping there is increasing demand of product
-Filed for expansion capacity of 30,000 TPA

-DMF prices are already increasing.
-From 60Rs to 90Rs as of now. While with the ADD, price support of 80Rs is expected by management
-Expect to reach 1800-2000 TPA till end of FY 2021
-Breakeven for DMF at price was increased with the increase in RM & end product price

Balaji Specialty:

-Sales 55 cr. Currently in Cash loss, expect from next quarter to have cash profit
-Order book of subsidy is slowly increasing & of small amt. Mainly sales are not upfront.
DMF, Methylamines & other products will be in line commercialized having EC in route

Morpholine

-Demand of Morpholine in export market is increasing
-Sales to China has been made in last quarter
-With current market situation, company can easily compete with global players
-In case of price decrease of RM, mgnt has to decrease price of product as well

Loss in CFL:

-Worth of inventory is 7-8 crores. While there would be loss in sale of inventory
-Land 1.6 crores. Building 6.6 Crores. revaluation will make this 20-25 crores.

Balaji specialty is a new company. Going to big company of specialty would not allow the subsidiary to gain big order because of small balance sheet. Hence acquired

Methylamines is expected to be commercialized till June 2022 with capacity of 48,000 TPA

Squeeze of supply of DMF led to increase in demand of DMF in short term

Month on month growth has been started.
Major customer include Coromandal. However management doesn't want a big order due to fluctuation of RM prices

Refer to our Q2 FY 2021 conference call here 👇👇👇

thetycoonmindset.com/conference-cal…