HDFC Securities: Balaji Amines’ Volume And Margin Surprise Positively
Balaji Amines facility located at Tamalwadi Village, near Solapur in Maharashtra. (Image: Company website)

HDFC Securities: Balaji Amines’ Volume And Margin Surprise Positively

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

Balaji Amines Ltd. Q1 Ebitda/adjusted profit after tax was 41/71% above our estimates, attributable to (1) 10% higher sales volumes and (2) 28% higher per-kg Ebitda.

Takeaways from the earnings call: Production of Acetonitrile will double from the current 9 tonne per day to 18, post a de-bottlenecking drill from November 2020. Balaji Amines expects Acetonitrile prices to remain elevated as its demand from pharma customers continues unabated, and the synthetic manufacturing process that is employed by the company produces a superior quality product.

Greenfield project - Rs 800 million of the budgeted Rs 1.5 billion has been spent; expected commissioning is by Q4 FY21. Balaji Specialty Chemicals (BSC) revenue was unaffected by the pandemic as the end-user industry is agrochemicals.

Click on the attachment to read the full report:

HDFC Securities Balaji Amines Q1FY21 Results Update.pdf


This 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.

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