Balaji Amines conducted the concall today at 4:00 Pm
Here are the Conference call highlights
" Achieving growth prospects with Over-all Expansion."
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Here are the Conference call highlights
" Achieving growth prospects with Over-all Expansion."
Hit 'Retweet' to educate more investors ☎️🧵
Outlook
- Company stands strong by not letting it's operations getting hampered by second wave of Covid-19.
- They gained advantage of having products under essential category.
- Their subsidiaries has also delivered strong results, which supported their volume levels.
- Company stands strong by not letting it's operations getting hampered by second wave of Covid-19.
- They gained advantage of having products under essential category.
- Their subsidiaries has also delivered strong results, which supported their volume levels.
- Balaji speciality chemicals Pvt Ltd, recorded capacity utilisation of 42% and expect it to reach 50-60% soon.
- This company is expecting to increase their export share by 25-30%
- The company has now the largest Ethylamines in India at 22,500 tons per annum.
- This company is expecting to increase their export share by 25-30%
- The company has now the largest Ethylamines in India at 22,500 tons per annum.
- They have a good supply book for its main raw material Methanol , Ammonia and denatured ethyl for meeting Demand.
- Company stands out to be the only company to develop indigenous technology to manufacture Amines.
- Company stands out to be the only company to develop indigenous technology to manufacture Amines.
- Company has major of its business linked to pharma and paint industry.
- They both bring 76% of the total revenue.
- They have strong client base for amines, amine derivatives and speciality & other chemicals.
- They both bring 76% of the total revenue.
- They have strong client base for amines, amine derivatives and speciality & other chemicals.
- Speciality products volumes saw a decline during this quarter as it's raw material prices have gone up aggressively.
- Due to this plants are been stopped for some time.
- Same goes for DMF as due to low supply of oxygen.
- Due to this plants are been stopped for some time.
- Same goes for DMF as due to low supply of oxygen.
- It is very difficult to say when the price be back to normal.
- Companies Hotel division, balaji sarovar premiere has resulted in substantial amount of cash flow savings.
- They have an ARR of 3600 rupees approx.
- They have negligible Routine Capex incurred.
- They have an ARR of 3600 rupees approx.
- They have negligible Routine Capex incurred.
Financials
- Company has delivered strong topline growth during this period.
- There has been an increase in the EBITDA and PAT levels as well.
- The company operating margins were improved due to Healthy price relation and better capacity utilisation.
- Company has delivered strong topline growth during this period.
- There has been an increase in the EBITDA and PAT levels as well.
- The company operating margins were improved due to Healthy price relation and better capacity utilisation.
- The raw materials prices have been increasing for some time for company and they have reached its highest level before the end of quarter.
- Ammonia prove move to 40 to 50 rs. And same for others as well.
- They take about 2-3 months to pass on the cost to clients.
- Ammonia prove move to 40 to 50 rs. And same for others as well.
- They take about 2-3 months to pass on the cost to clients.
- This high price was due to shutting down of some main raw material suppliers and issues faced in the logistics business part.
- For speciality chemicals space the company undertook an Capex of about 250cr with a loan contribution of 150 cr.
- For speciality chemicals space the company undertook an Capex of about 250cr with a loan contribution of 150 cr.
- They are incurring many activities like upcoming mega power plant for saving.
- Under employees cost part there was reduction as well as few of the payments like bonuses were delayed.
- Under employees cost part there was reduction as well as few of the payments like bonuses were delayed.
Investments
- With commencement of 16500 tons Ethylamines plant under phase 1 of their 90 acer green field project they were able to increase their volumes and add new income source for them.
- With commencement of 16500 tons Ethylamines plant under phase 1 of their 90 acer green field project they were able to increase their volumes and add new income source for them.
- They have decided to undertake new Capex of 70 to 80 cr for Acetonitrile and is expected to get it commissioned by FY23.
- Their DMC plant is hoped to commence production by end of FY22.
- Their DMC plant is hoped to commence production by end of FY22.
- New set of plans for Methylamines and DMF are been decided to increase their capacity in linked to government packages and meet captive demands.
- Till now 171 cr are been spend on phase 1 of the project.
- Till now 171 cr are been spend on phase 1 of the project.
- Company will also be running debottlenecking for its few products plant based on the requirements.
- They are also planning an backward integration for its oxygen plant along with power plant as mentioned above.
- They are also planning an backward integration for its oxygen plant along with power plant as mentioned above.
- After completion of all the projects the company is expected to achieve its 2000 to 2500 mark soon enough
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