Balaji Amines was up 3 percent after its subsidiary received the status of a mega project from the Maharashtra government on January 4.
The mega status project was given to the 'Expansion Project for Manufacture Speciality Chemicals' by Balaji Speciality Chemicals Limited, a subsidiary of Balaji Speciality Chemicals. The proposed investment for this is Rs 750 crores, said the company in an exchange filing.
Balaji Amines stock was up 3.18 percent at Rs 2,674.15 at 2.27 pm on the National Stock Exchange.
The stock has gained 2.28 percent in the past year and 16.7 percent in the last six months.
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The company is planning to undertake capex for a new product, namely n-Butylamine which is used as an ingredient in the manufacturing of pharmaceuticals, APIs, pesticides and emulsifiers. The capacity for this is 15,000 TPA. The annual domestic demand for n-butylamine stands at 8000 tons.
The company's consolidated revenue fell 39 percent year-on-year (YoY) to Rs 387 crore in the July-September quarter. Its consolidated profit after tax (PAT) fell 69 percent YoY to Rs 61 crore in the same period. Balaji Amines consolidated earnings before interest tax depreciation and amortisation (EBITDA) fell 66 percent YoY to Rs 61 crore in Q2FY24.
The weak earnings were a result of challenges in the speciality chemical industry where a rapid change in input costs resulted in lower landed costs of imported competitor products impacting Balaji Amines ability to charge a fair price for its products.
Balaji Amines is the largest manufacturer of Aliphatic Amines in India. It has over 30 products and 2,31,000 MTPA capacity. Products manufactured by the company are mainly supplied to pharma, paints and resins, and agrochemical industries.
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