Alkyl Amines conducted their conference call today at 4 pm.
Here are the key takeaways π
Here are the key takeaways π
Business Updates:
β’ Much of growth contributors was value growth.
β’ Around 1/3 growth delivered by volume and 2/3 in volume. There were certain supply chin issue, leading to lower growth ion volume.
β’ Much of growth contributors was value growth.
β’ Around 1/3 growth delivered by volume and 2/3 in volume. There were certain supply chin issue, leading to lower growth ion volume.
Growth:
β’ Co. is fairly optimistic on volume, with respect to sales in Pharma, as Pharma is going well.
β’ 3-5 year Volume growth target: 15%+ CAGR.
β’ There can be mid blip due to expansion.
β’ Co. is fairly optimistic on volume, with respect to sales in Pharma, as Pharma is going well.
β’ 3-5 year Volume growth target: 15%+ CAGR.
β’ There can be mid blip due to expansion.
Acetonitrile:
β’ Alkyl does not have much higher share, while most of the acetonitrile is imported, which co. is targeting. Hence co. added expansion here.
β’ Co. focusing on increasing the domestic share, while there is big export market, but not targeting as of now.
β’ Alkyl does not have much higher share, while most of the acetonitrile is imported, which co. is targeting. Hence co. added expansion here.
β’ Co. focusing on increasing the domestic share, while there is big export market, but not targeting as of now.
Methyl Amines:
β’ Increase in capacity of ~150 Tonnes per day, which was completed last year.
β’ Already expanded DMA, HCL derivatives, and most of it is internally consumed.
β’ Increase in capacity of ~150 Tonnes per day, which was completed last year.
β’ Already expanded DMA, HCL derivatives, and most of it is internally consumed.
Ethyl Amines Investment:
β’ CAPEX would be 300 cr. This will increase capacity by 30%.
β’ Certain part is internally consumed.
β’ CAPEX would be 300 cr. This will increase capacity by 30%.
β’ Certain part is internally consumed.
Revenue Mix:
β’ Agrochemical and Pharma has 70% contribution of which Pharma shares ~45% of total revenue.
β’ While rest is from Dyestuff, Water Treatment, Rubber Chemical and miscellaneous sector.
β’ Agrochemical and Pharma has 70% contribution of which Pharma shares ~45% of total revenue.
β’ While rest is from Dyestuff, Water Treatment, Rubber Chemical and miscellaneous sector.
Capacity Utilization:
β’ Most plants are running at fairly high utilization, and there some head room. But not much higher, hence expansion added.
Margin:
β’ This year quarter margin was decline due to increase in raw material price.
β’ Most plants are running at fairly high utilization, and there some head room. But not much higher, hence expansion added.
Margin:
β’ This year quarter margin was decline due to increase in raw material price.
Industry Growth:
β’ Lost of SME and MSME has started using domestic product.
β’ Supply Chain is not that difficult nowadays.
β’ While business is seeing good growth in India.
β’ Lost of SME and MSME has started using domestic product.
β’ Supply Chain is not that difficult nowadays.
β’ While business is seeing good growth in India.
Covid:
β’ 2nd wave impacted many employees of Alkyl, with respect to last year. However now there is recovery and 80-90% are recovered and there is not much impact on plant.
β’ 2nd wave impacted many employees of Alkyl, with respect to last year. However now there is recovery and 80-90% are recovered and there is not much impact on plant.
CAPEX:
β’ De-bottlenecking existing capacity, and is Scouting for land.
β’ Acetonitrile will have expansion 120cr.
β’ This year spend was ~150 cr and next year expense is targeted to be ~200cr.
β’ There is headroom of land in Kumkum and Dahej and new land to be acquire next year.
β’ De-bottlenecking existing capacity, and is Scouting for land.
β’ Acetonitrile will have expansion 120cr.
β’ This year spend was ~150 cr and next year expense is targeted to be ~200cr.
β’ There is headroom of land in Kumkum and Dahej and new land to be acquire next year.
Plans:
β’ Previously, Alkyl has grown 10-15% in terms of volume and co. is not seeing any slowdown in this volume growth (with some exception)
β’ India is growing well, which will have domestic growth in amines segment.
β’ Previously, Alkyl has grown 10-15% in terms of volume and co. is not seeing any slowdown in this volume growth (with some exception)
β’ India is growing well, which will have domestic growth in amines segment.
Customers:
β’ Almost 99% of the customer are repeat customer.
β’ All the top 10 customers of co. are 10 years old customers and certain are 30-40 years old.
β’ Almost 99% of the customer are repeat customer.
β’ All the top 10 customers of co. are 10 years old customers and certain are 30-40 years old.
Management Bandwidth:
β’ There are younger people in the team who are already in the team from past few years, which can lead the company in future.
β’ There are younger people in the team who are already in the team from past few years, which can lead the company in future.
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