During Tuesday’s trading session, the shares of one of the leading R&D-driven manufacturers of Specialty Chemicals surged 17.3 percent to hit a new 52-week high at Rs. 1,890 on BSE, after reporting Q2 FY25 results with a rise in net profit by nearly 153 percent QoQ and 155 percent YoY.
With a market cap of Rs. 7,648 crores, at 01:56 p.m., the shares of Ami Organics Limited were trading in the green at Rs. 1,853.45, up by nearly 15 percent, compared to its previous closing price of Rs. 1,612.
What’s the news:
The fluctuations in the share prices were observed after Ami Organics Limited announced the financial results for Q2 FY25, through the latest filings with the stock exchanges on Tuesday during market hours.
For Q2 FY25, Ami Organics reported consolidated revenue from operations of Rs. 246.7 crores, reflecting a significant growth of around 40 percent QoQ from Rs. 176.7 crores in Q1 FY25, as well as an increase of about 43.2 percent YoY from Rs. 172.4 crores in Q2 FY24.
This revenue growth was driven by outstanding performance in our Pharmaceutical Intermediates and Specialty Chemicals businesses.
The company’s net profit for Q2 FY25 grew to Rs. 37.6 crores, representing a significant increase of around 153 percent QoQ from Rs. 15 crores in Q1 FY25, as well as a year-on-year increase of nearly 155 percent from Rs. 14.7 crores in Q2 FY24.
EBITDA for Q2 FY25 reached Rs. 49 crores, representing an increase of around 97.2 percent YoY from Rs. 25 cores in Q2 FY24, with an EBITDA Margin of 19.8 percent, up from 14.4 percent, during the same period.
In addition, the company has maintained better net profit margins reporting 15.2 percent in Q2 FY25, as against 8.5 percent in Q2 FY24.
Management Guidance:
The company’s key products continued to exhibit growth momentum, and an earlier-than-expected ramp-up in its CDMO business provided an additional boost to results.
Furthermore, management announced that the Pharmaceutical and Medical Devices Agency (PMDA) in Japan has issued an Inspection Result Report, declaring the Sachin Facility as Good Manufacturing Practices (GMP) compliant.
Ami Organics is witnessing a resurgence in demand for its core molecules, supported by the increase in CDMO contracts and robust volume growth within its Specialty Chemicals division.
Based on the current order pipeline, the company’s management has raised the revenue growth guidance for FY25 from 25 percent to 30 percent.
Stock Performance:
The stock has delivered positive returns of nearly 62.3 percent in one year, as well as around 53 percent returns in the last six months. So far in 2024, the shares of Ami Organics have given positive returns of about 63.3 percent.
Shareholding Pattern:
As per the latest shareholding pattern, the Promoters hold a 35.97 percent stake in the company, Foreign Institutional Investors (FII) hold a 13.87 percent stake, while Retail Investors and Domestic Institutional Investors (DII) hold a 30.24 percent and 19.93 percent stake in Ami Organics, respectively.
As of September 2024 shareholding data available with the BSE, the ace investor Ashish Kacholia holds a 1.84 percent stake in the company.
About the company:
Headquartered in Surat, Ami Organics Limited, a leading global manufacturer of advanced pharmaceutical intermediates and speciality chemicals, is engaged in the business of drugs intermediate chemicals and related activities.
The company develops and manufactures advanced pharmaceutical intermediates for regulated and generic active pharmaceutical ingredients (APIs) and chemicals for New Chemical Entities (NCE), and other specialty chemicals including parabens and paraben formulations, methyl salicylate, semiconductor chemicals, electrolyte additives and niche key starting materials (KSM) for cosmetics, fine chemicals and agrochemical industries.
Written by Shivani Singh
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