Balaji Amines Stock Hits A Record High As Volumes Jump In Q3
Shares of Balaji Amines Ltd. jumped to a record high after quarterly earnings more than doubled and volumes surged.
The maker of methylamines, ethylamines and specialty chemical derivatives saw its net profit rise to Rs 75 crore in the quarter ended December from Rs 23.4 crore a year earlier, according to an exchange filing.
The company’s total volumes for the quarter stood at 28,353 million tonnes, a rise of 34% over the year earlier.
Other highlights (year-on-year)
- Revenue increased 72% year-on-year to Rs 392.1 crore.
- Operating profit, or earnings before interest, tax, depreciation and amortisation, jumped nearly threefold to Rs 117.36 crore.
- Margin expanded more than 1,100 basis points to 29.9%.
“The improvement in operating margin was primarily on account of improvement in operating leverage due to increase in volume offtake and better price realisations,” the company said in the filing.
As part of phase 1 of a greenfield project, the company intends to commence manufacturing of ethylamines by the end of FY21 and that of dimethyl carbonate by the end of second quarter of FY22.
“The prospects of agrochemicals look robust on account of improved overall dynamics for the agriculture sector in terms of highest water storage across reservoirs for last five years and increased acreage under cultivation,” Managing Director D Ram Reddy was quoted as saying in the filing. “We also plan to steadily expand our reach in the export market over medium to long term, given the eagerness of global companies to reduce their exposure to Chinese sources of suppliers.”
Shares of Balaji Amines gained as much as 19.7% — the most since April 2015 — to Rs 1,514.7 apiece in early trade on Tuesday. All the four analysts tracking the company recommend a ‘buy’. The stock crossed its Bloomberg consensus 12-month price target of Rs 1,280 on Tuesday.