Alkyl Amines Chemicals (506767) Q2 24/25 earnings summary

Executive summary

• Half-yearly performance improved over last year, driven by satisfactory volume growth and significant increases in revenue and profit after tax.

• Volume growth for H1 FY25 was 8%-10%, with Q2 FY25 showing a 17% year-over-year increase.

• Revenue from operations for the quarter ended September 30, 2024, was ₹414.89 crore, up from ₹352.15 crore in the same quarter last year.

• Profit after tax for the quarter was ₹47.46 crore, compared to ₹27.24 crore year-over-year.

• Growth was seen in both domestic and export markets.

Financial highlights

• Margins were squeezed by about 2 percentage points quarter-over-quarter due to finished goods prices dropping 5-6% while raw material prices fell 3-4%.

• Coal costs remained stable at INR 9-10 per kg (INR 9,000-10,000 per metric ton).

• Revenue mix remained stable: life sciences accounted for 65%-70% of turnover, with domestic/export split at 80/20.

• Total revenue for the quarter was ₹424.05 crore, a year-over-year increase from ₹354.50 crore.

• Earnings per share (basic) for the quarter stood at ₹9.28, compared to ₹5.33 in the prior year.

Outlook and guidance

• Management expects to achieve around 10% volume growth for FY25.

• Focus remains on volume growth over margin expansion, with cautious optimism for improved margins and volumes in the future.

• CapEx guidance: INR 80-100 crores for FY25 and INR 100-120 crores for FY26.

• The company continues to focus on its specialty chemicals segment, with no change in segment reporting.