Chemical stock engaged in the business of manufacture and sale of specialty chemicals, aliphatic amines, and derivatives slumped by 7 percent in the day’s trade upon declaring its Q1FY25 results along with multiple expansion plans.
Price Action
With a market capitalization of Rs. 7,238 Crores, the shares of Balaji Amines Limited were trading at Rs. 2234 per equity share, down 6.62 percent from its previous day’s close price of Rs. 2392.50.
About the Company
Balaji Amines Limited is engaged in the business of manufacture and sale of specialty chemicals, aliphatic amines, and derivatives like Dimethylamine, Di-Methyl Acetamide, Polyvinyl Pyrrolidone, and many others. It is also engaged in running a 5-star hotel in Maharashtra.
Q1FY25 Results
Its Revenue from operations declined by 17 percent YoY from Rs. 463.67 Crores in Q1FY24 to Rs. 384.74 Crores in Q1FY25 and it declined by 7 percent QoQ from Rs. 413.93 Crores in Q4FY24 to Rs. 384.74 Crores in Q1FY25.
Its Net Profit declined by 33 percent YoY from Rs. 67.67Crores in Q1FY24 to Rs. 45.55 Crores in Q1FY25 and declined by 37 percent QoQ from Rs. 72.48 Crores in Q4FY24 to Rs. 45.55 Crores in Q1FY25. Its Net Profit Margin increased from 14.4 percent in Q1FY24 to 11.59 percent in Q1FY25.
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Expansion Plans
Balaji Amines Limited has announced new expansion plans with an investment of ~Rs. 750 Crores in its subsidiary dedicated to the production of a range of products, including Hydrogen Cyanide (HCN), Sodium Cyanide (NaCN) 30%(Solution), Sodium Cyanide (NaCN) 100%(Solid), Ethylene Diamine Tetra Acetic Acid, Ethylene Diamine Tetra Acetic Acid Disodium Salt, Benzyl Cyanide, Phenylacetic Acid, and Tri Ethyl Ortho Formate /Tri Methyl Ortho Formate.
Notably, the Industries, Energy, and Labour Department, Government of Maharashtra, has granted Mega Project status to our Expansion Project for Speciality Chemicals under the Packaged Scheme of Incentives (PSI), 2019.
Project Updates
● The Methylamines project implementation is progressing as planned. The project is likely to be commissioned around the end of Q3 of FY 2024- 25.
● The electronic Grade DMC plant is under execution and will be commissioned during FY 24-25. This has a good demand for EV Batteries and a good
potential in the coming years as the company is the only manufacturer of DMC in India right now with an installed capacity of 15,000 MTPA.
● The Dimethyl Ether project for the manufacture of DME is under execution at Unit-IV and the Plant is expected to be commissioned during Q4 of FY 2024-25.
This has an application in the Aerosol industry apart from using as a replacement for LPG for Industrial and Commercial usage. The Bureau of Indian Standards (BIS) has initiated to release of a Standard to blend DME 20 percent with LPG, seeing the advantages of DME.
● Balaji Amines Limited has proposed to take up the following projects, the N-Methyl Morpholine (NMM) -5000 TPA, N-(n-butyl) Thiophosphoric triamide (NBPT) – 2500 TPA.
It is also proposing to manufacture Isopropylamine (Mono & Di) in the existing plant of Ethylamine at Unit -I by modifying the existing Ethylamines plant which is not in operation as it has set up a New and high-output plant for manufacturing Ethylamines at Unit – IV.
Written by: Bharath K.S
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