Balaji Amines (530999) Q1 22/23 earnings summary

Executive summary

• Q1FY24 performance weakened amid global specialty-chemical demand contraction and China oversupply; management viewed the downturn as temporary and expected market improvement to support FY25 growth.

• Expansion projects continued, with a revenue target of INR 4,000 crore in FY26–FY27 under normal pricing conditions.

Financial highlights

• Consolidated revenue was INR 469.32 crore, down 30.46% YoY; EBITDA was INR 103.69 crore, down 52.76%, and PAT was INR 67.68 crore, down 54.28%.

• Consolidated EBIT was INR 92.20 crore, down 55.76% YoY; PBT was INR 90.37 crore, down 55.91%.

• Consolidated diluted EPS was INR 16.28 versus INR 37.95 in Q1FY23; total volume was 26,820 MT versus 27,358 MT.

• Standalone revenue was INR 341.52 crore, down 34.00% YoY; EBITDA was INR 55.89 crore, down 57.83%, and PAT was INR 34.47 crore, down 62.80%.

Outlook and guidance

• Consolidated EBITDA margin guidance was 20%–22%; management targeted INR 4,000 crore revenue in FY26–FY27 at stable, normal pricing.

• FY24–FY25 revenue was expected at plus or minus INR 3,000 crore; management anticipated prices normalizing by the final quarter of the current FY and volume recovery over the next 1–2 quarters.

• Export mix target was 20%–22%, with 78%–80% domestic sales, expected within 2–3 quarters.

• n-Butylamine capacity of 15,000 TPA was targeted for commissioning by Dec 2023; the 40,000 TPA methylamine plant was targeted for Jun 2024.

• The 7,500-ton DMAHCL plant was expected by end-H2 FY24; the 100,000 TPA DME plant was targeted for end-FY25.