Operational Highlights
- Revenues stood at ₹475 Cr in Q3FY22 compared to ₹366 Cr in Q3FY21, growth of 29.4% YoY
- EBITDA stood at 109.3 Cr translating 23% EBITDA margins
- Sales volumes were down by 13.77% from 31,993 MT in Q3FY21 to 27,589 MT in Q3FY22.as few of the clients couldn’t procure Key Starting Materials (KSMs) to match the products.
- Despite sluggish demand for few of the products and shut down of actonitrile and dimethylformate plants for debottlenecking which were completed in the month of November 2021, the revenues showed a decent growth of 44% which stood at ₹556 Cr in Q3FY22
Volume contribution
- Amines- 6,460 MT
- Amines Derivatives- 9,912 MT
- Specialty Chemicals-11,217 MT
- Capacity utilisation stood at 52% in 9MFY22
- Procurement of raw material are key challenge for FY23
- Revenue targets of ₹475- ₹500 Cr in next fiscal year.
- DMC is used in the production of Polycarbonate and Lithium Batteries – the consumption of which will exponentially grow in India backed by government incentives
- Pharmaceutical application segment and agrochemicals are expected to drive significant demand for Methylamines and related value-added products
Subsidiary- (Balaji Specialty Chemicals Private Ltd)
- Unavailability of key raw materials resulted in contraction of production. However, from the month of January the supply bottlenecks have eased, and expect to operate the subsidiary plant at 70-80% capacity and achieve annual turnover of about ₹475 – ₹500 crore in the next fiscal year
Capex
Acetonitrile
- Ramp-up in production from 9tons per day to 13 tons per day due to debottlenecking.
- Plan to undertake further capex for additional Acetonitrile plant having capacity of 50 TPD and plant is likely to commence operations by FY24.
Di-Methyl Carbonate
- The project is on track and expect to commence during Q1FY23
- Confident on achieving capacity utilisation of 60-70% in the first year of operations.
Methylamines
- Plan to set up a separate plant for Methylamines with capacity of 40,000 to 50,000 TPA under Phase-2 expansion of Greenfield Project
- They already received environmental clearance.
Dimethyl Formamide
Plan to set up a separate plant for DMF with a capacity of 30,000 TPA under phase-2 expansion of Greenfield Project