Shares of Balaji Amines reeled under selling pressure, plunging as much as 5 percent on February 13 after the company's operational performance took a sharp hit in Q3.
The company's EBITDA margin contracted sharply to 14.3 percent in the December quarter, down from 19.1 percent in the year ago period. The drag on margins was driven by a fall in volumes and capital expenditure projects.
Aside from that, the company's overall earnings performance in Q3 also remained weak, further weighing down sentiment for the stock. Net profit dropped 32.8 percent on year to Rs 33.20 crore, down from Rs 49.40 crore in the year ago period.
A similar trajectory panned out for the company's topline as revenue fell 18.4 percent year-on-year to Rs 312.40 crore.
At 09.30 am, shares of Balaji Amines were trading at Rs 1,522 on the NSE.
“During Q3 FY25, our financial and business performance remained stable despite the challenges posed by global macroeconomic conditions," D Ram Reddy, Managing Director of Balaji Amines said in an exchange filing.
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However, looking ahead, as volume uptake gradually increases, Reddy expects margins and bottomline for Balaji Amines to improve in line with the recovery in the industry. "The resurgence in domestic demand, along with positive trends in international markets, is driving this momentum. Additionally, the utilisation of expanded capacities will contribute to margin enhancement, as some of our products progress through the final approval stages with end-user industries," he added.
The company is also on an expansion spree, working on a slew of projects, including upgrades to the DMC/PG plant for Electronic Grade DMC and high-grade Propylene Glycol, both set for commissioning by March 2025. The Di Methyl Ether plant will be ready by Q1 FY 2025-26, while the 15 MT/day NMM plant and a modified Iso Propyl Amines facility (21 TPD) are expected next financial year.
A 20 MW greenfield solar power plant, with an initial 8 MW phase, will also be operational this year to cut energy costs. Future plans include a 2,500 TPA NBPT plant and a 60 MT/day ACN plant, both set for FY 2025-26. All projects will be funded through internal accruals.
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