Ami Organics Q3 2022 Concall Highlights

Operational Highlights

• Revenue from operations for Q3FY22 grew by 53.5% YoY to ₹141.2Cr
• Gross margin for the 9M FY22 improved to 48.8% higher by 238 bps when compared to 9M FY21 numbers
• EBITDA stood at ₹30 Cr in Q3FY22 from ₹21.7 Cr in same period previous year translating a growth of 38% YoY
• EBITDA has improved sharply but it has not yet reached its full potential

Revenue breakup

Advance Intermediates – 75%, Chemicals- 20% and others- 5%

• Prudent cost measure and swiftly passing on of incremental input cost to the clients helped to improve gross margins even in the highly volatile environment of input costs.
• Exports contributed 63% to total revenues in Q3FY22
• Two new import substitute products launched. Initial response to import substitute products has been very encouraging; More such products are in pipeline
• Growth was driven by pharma intermediate business and strong growth in specialty chemicals business
• Integrating dispersed manufacturing sites for single product to one single facility thus improving the efficiency and capital allocation
• Usually Q1 is lower performing quarter and Q4 comes out to be the best i.e  H2 contributes > H1 revenues.
• Margins for specialty business is 3-4% lower than the API business. 19% margins in specialty chemicals are expected at peak levels
• Long term contracts in core business for the period of 1- 1.5 years

Capex

• During the quarter, successfully transferred current production operations of specialty chemical business at Ankleshwar facility to Jhagadia facility without any revenue loss
•  Ankleshwar facility will be repurposed for the expansion of Pharma Intermediates business to support the future growth. Company is still working on the design and engineering required to repurpose the Ankleshwar facility for Pharma Intermediates.
• Targeting to reach 80-85% utilisation in next two years
• Introducing flow chemistry and other process efficiency in specialty chemicals