Release Date: November 19, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Balaji Amines Ltd (BOM:530999, Financial) reported an improvement in EBITDA margins by 110 basis points over the previous quarter, indicating better profitability.
- The company successfully launched a new state-of-the-art Methylamine plant, increasing annual capacity significantly from 48,000 metric tons to 88,000 metric tons.
- Balaji Amines Ltd (BOM:530999) achieved B I certification for its products, reinforcing its commitment to high-quality standards and positioning it as the only certified manufacturer in India.
- The company is making significant investments in new projects, including a solar power plant, which aligns with its ESG commitments and aims to reduce operational costs.
- Balaji Amines Ltd (BOM:530999) remains a zero-debt company, showcasing strong financial management and stability.
Negative Points
- The company's revenue from operations decreased from INR395 crores in Q1 F 525 to INR356 crores in Q2 F 525, indicating a decline in sales.
- Volume growth has been flat, with total volumes decreasing from 28,071 metric tons in Q1 F 525 to 26,345 metric tons in Q2 F 525.
- The company faces challenges from Chinese dumping in certain product segments, affecting pricing and market dynamics.
- There is uncertainty regarding the timeline for achieving full capacity utilization of the new Methylamine plant, which is expected by financial year 2026-2027.
- The anticipated growth in the battery chemicals segment is delayed, with potential customers yet to commence production, impacting expected revenue streams.
Q & A Highlights
Q: When can we expect the gadget notification for blending of DME with LPG?
A: The notification is currently awaiting publication and is expected to be out by the end of this month. (Managing Director)
Q: Can we expect 100% capacity utilization for DMF now that the new plant is commissioned?
A: We are aiming for 80-85% capacity utilization for the rest of the year. We may initiate anti-dumping measures next quarter if prices continue to rise. (Managing Director)
Q: What is the expected timeline for the completion of phase one and phase two CapEx for BSC unit two?
A: Phase one is expected to be completed in 11 to 12 months from today, with 2 to 3 plants commissioned. Phase two will follow 12 months after phase one commencement. (Managing Director)
Q: What is the guidance for FY25 in terms of volumes and price increases?
A: We expect a minimum of 10-12% volume growth by the end of the year. Prices have been declining but are now stabilizing, with potential increases by the end of the financial year. (Managing Director)
Q: How will the new methylamine plant impact the top line?
A: The new plant increases capacity from 48,000 to 88,000 tons. We expect 50-60% utilization next year, with 70-80% by FY26-27. (Managing Director)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
