HDFC Securities: Alkyl Amines Logs Exponential Rise In Q1 Margins

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..HDFC Securities Report.Alkyl Amines Chemicals Ltd.’s Q1 Ebitda/adjusted profit after tax was 95%/2.2 times above estimates, owing to the lower-than-anticipated impact of Covid-19 on sales volumes and higher-than-anticipated margins.Margins were largely driven by three products, viz. pharma grade-Acetonitrile, DimethylamineI Hydrochloride and Isopropyl amine.Concall takeaways:1. Capex guidance for FY21 is revised to Rs 1.5-1.8 billion from Rs 2.5 billion as commissioning of the Acetonitrile capacity has been pushed to Q2 FY22 (earlier, Q4 FY21).The Amines derivatives plant should commission in H2 FY21. At peak utilisation, both plants put together should contribute Rs 4-5 billion to the topline at current prices.2. Alkyl Amines has 40% of the domestic Acetonitrile market share, and the increased pharma demand has widened margins for the product.Export market and increase in domestic demand would be met by the expanded capacity of 15 kilo tonne per annum.3. Demand across products is back at pre-Covid levels from July.4. DMA-HCL capacity to be doubled by December 2020, given the current pharma demand..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

HDFC Securities: Alkyl Amines Logs Exponential Rise In Q1 Margins

HDFC Securities: Alkyl Amines Logs Exponential Rise In Q1 Margins

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