Balaji Amines slips 6%, hits 52-week low on disappointing Q3 results

The company said the fall in operating margin was primarily on account of de-growth in pharma and API sector

Shares of Balaji Amines hit a 52-week low of Rs 2,161.35, falling 6 per cent on the BSE in Tuesday's intra-day trade, after the company reported a weak operational performance in the December quarter. The consolidated earnings before interest, tax, depreciation, and amortisation (Ebitda) declined 582 bps to 22.14 per cent, with the company attributing the fall in operating margin to de-growth in pharma and API sector.

In Q3FY23, the company's revenue from operations grew 3.48 per cent to Rs 588 crore from Rs 569 crore in Q3FY22. Total sales volumes were up 2.02 per cent at 28,147 MT for Q3FY23 as against 27,589 MT in Q3FY22. Profit after tax declined 17.5 per cent to Rs 83.79 crore as against Rs 101.59 crore in the year ago quarter.

Balaji Amines is a leading manufacturer of aliphatic amines & speciality chemicals in India, specialized in manufacturing of methyl amines, ethyl amines, derivatives of amines and other specialty chemicals.

In the past three months, the stock has declined 30 per cent, as compared to 1 per cent fall in the S&P BSE Sensex. It has corrected 44 per cent from its 52-week high level of Rs 3,842, touched on September 15, 2022.

However, the management said revenues from the new commenced plants will start contributing to the company's top line from coming quarters, which, in turn, can improve the margin profile of the company from Q1FY24.

"Di-methyl Carbonate (DMC) is used in Pharma and in the production of Polycarbonate and Lithium Batteries – the consumption of which will exponentially grow in India backed by various government initiatives and electric vehicle (EV) industry being a sunrise industry in the years to come," the management said.