Alkyl Amines Q1 Review - Continued Capacity Addition In The Space To Impact Margins: Motilal Oswal
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Motilal Oswal Report
Alkyl Amines Chemicals Ltd. reported revenue in line with our estimates, while Ebitda was 18% below our estimate due to margin contraction.
Gross margin contracted QoQ (by 810 basis points) to 49% in Q1 FY22 – the lowest level in the last eight quarters.
Raw material price inflation is likely to continue over the next couple of quarters due to a demand-supply mismatch in the global commodity markets (as global economies revive to normal levels), coupled with high freight costs.
Alkyl Amines is expanding its Acetonitrile capacity by 15 kilo tonnes per annum to 27ktpa – making it the largest producer with expected commissioning by Q3 FY22.
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