Balaji Amines (530999) Q3 23/24 earnings summary

Executive summary

• Q3FY24 consolidated performance improved QoQ: total income was ₹392 crore, EBITDA ₹83 crore and PAT ₹56 crore, supported by stabilized input costs and a settling industry environment.

• Management cited rebounding domestic demand and encouraging international trends, and maintained a positive long-term outlook with opportunities expected to grow in FY25.

Financial highlights

• Q3FY24 consolidated total income ₹392 crore vs ₹387 crore QoQ; EBITDA ₹83 crore vs ₹61 crore, up 36.07%, and PAT ₹56 crore vs ₹36 crore, up 55.56%.

• Q3FY24 consolidated EBITDA margin was 21% vs 16% QoQ; PAT margin 14% vs 9%; cash PAT ₹67 crore vs ₹48 crore.

• Q3FY24 consolidated sales volume was 26,903 MT, down 2.57% QoQ; diluted EPS was ₹15.24 vs ₹10.71 in Q2FY24.

• 9MFY24 consolidated total income was ₹1,248 crore, down 34.11% YoY; EBITDA ₹247 crore, down 53.04%; PAT ₹160 crore, down 54.29%.

• 9MFY24 consolidated EBITDA margin was 20% vs 28% YoY; PAT margin 13% vs 19%; cash PAT ₹194 crore, down 51.13%.

Outlook and guidance

• Methylamine project remains on plan, with commissioning expected in Q2FY25; Dimethyl Ether plant commissioning is expected by FY25-end.

• 20 MW greenfield solar plant is expected to be commissioned by FY25-end; rooftop solar capacity of 3.15 MW is expected before March 31, 2024.

• Proposed N-Methyl Morpholine capacity of 3,000 TPA and NBPT capacity of 2,500 TPA are each expected to be commissioned by FY25-end.

• Management expects long-term growth opportunities and increased prospects in FY25, citing improving demand and international market trends.