HDFC Securities: Balaji Amines’ Volume And Margin Surprise Positively
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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.
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