Shares of Balaji Amines fell sharply on February 7 as the company's weak operational show in the December quarter weighed on investor sentiment.
At 10.23am, shares of Balaji Amines traded 5.08 percent lower at Rs 2,183.55 on the National Stock Exchange.
The company's EBITDA margin contracted to 22.14 percent in the October-December period, down from the 27.96 percent a year ago. The fall in operating margin was primarily on account of degrowth in pharma and active pharmaceutical ingredients sector, the management said in an exchange filing.
The disappointing operational performance also dragged the specialty chemical manufacturer's bottomline down 17.52 percent on year to Rs 83.79 crore.
The growth in revenue from operations was also tepid due to marginal rise in volumes. Revenue from operations came at Rs 588.47 crore, up by 3.48 percent, as against Rs 568.70 crore in the corresponding quarter a year ago.
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The company's management, however, remains hopeful of delivering improved performances in the coming quarters. "Revenues from the new commenced plants will start contributing to our topline from the coming quarters which, in turn, can improve the margin profile of the company from the first quarter of the next financial year," it said.
The company also plans to spend Rs 400-500 crore in the next two-three years as part of its capacity expansion plans which may further aid its performance in the long-term.
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