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Net Sales are expected to increase by 29.01 percent Y-o-Y (up 1.19 percent Q-o-Q) to Rs 678.2 crore, according to KR Choksey.
Balaji Amines’ management said the current developments have contributed to a price premium of about 25 percent, which can ease as these developments subside
Based on near term capacity expansion plans, improving end markets, product pricing scenario, expanding product portfolio both Balaji Amines (16.3x 2019e earnings) and Alkyl Amines ( 17.5x 2019e earnings) are well placed for growth in the near duopoly market.
Balaji Amines posted a strong set of earnings in Q3. There has been a 22 percent revenue growth led by the amines division and margins have also improved this quarter. In an interview with CNBC-TV18, D Ram Reddy, Joint MD at Balaji Amines discussed the results and his outlook for the company.
D Ram Reddy, JMD, Balaji Amines said the hotel business is expected to improve going forward.
In an interview with CNBC-TV18, D Ram Reddy, Joint MD of Balaji Amines said that the company will sustain 20 percent margins in FY17 and has capex plans worth Rs 30-40 crore to set up a Morpholine unit with an installed capacity of 10000 million tonne per annum (MTPA).
High capacity utilisation led to a 70 percent growth for Balaji Amines in FY16, Ram Reddy, the joint MD of the company said. He expects 50 percent growth to be sustainable in FY17.
Low oil prices have led to a 30 percent volume growth, D Ram Reddy, JMD of the company said. Reddy expects volume growth of 30-35 percent in FY17.
Balaji Amines saw a dip in profits in the fourth quarter results posted recently. The profits are down by an odd 56% at Rs 1.67 crore versus Rs 3.84 crore. There is huge interest cost and tax burdens that have impacted their profitability, says D Ram Reddy, director-commercial of Balaji Amines.
In an interview with CNBC-TV18’s Reema Tendulkar and Ekta Batra, Pratap Reddy, MD, Balaji Amines spoke about the results and his outlook for the company.