Balaji Amines Aims To Clock Rs 3,000-Crore Revenue In Two Years Amid Expansions: MD

Balaji Amines Ltd. is expecting to clock revenues of up to Rs 3,000 crore in the next two years, while maintaining its Ebitda margins between 18% and 22% amid ongoing expansions in the company, according to its Managing Director D Ram Reddy.

Balaji Amines, in the quarter ended September, reported a consolidated revenue of Rs 356 crore, down 8% from Rs 387 crore in the year-ago quarter. However, its Ebitda margins jumped to 20% from 16% in the same quarter of the preceding fiscal.

Talking to NDTV Profit about the company’s outlook in the near term, Reddy said that Balaji Amines had a range of things planned as part of its ongoing expansion plans.

“The dimethylamine plant just commissioned, which is about 48,000 tonnes per annum. The same way, dimethyl ether is another big product, which is about 1,00,000 tonnes, which is going to be commissioned by the end of the year or in the first quarter of the next financial year,” he said.

The company has “big expansion plans” for its subsidiary Balaji Speciality Chemicals as well, Reddy said.

"Next December, we will see at least two-three plants being commissioned and starting the production in Unit 2. These are very premium products, like cyanide-based products,” he said.

All these things will add up to boost the revenues and Ebitda margins of the company, the Balaji Amines MD said.

“Looking into all these things, I'll be saying that in the coming two years, we should touch about Rs 2,800 crore to Rs 3,000 crore in revenue. With that, about 18% to 20% of the Ebita margin should be very efficiently maintained,” he noted.

For Balaji Amines, the expansion worth over Rs 100 crore to Rs 200 crore will be done via internal accruals, Reddy informed. This will be in this fiscal and over the first two quarters of the next fiscal.

“As far as Balaji Speciality Chemicals is concerned, in the first phase we will be doing about Rs 350 crore to Rs 400 crore. In this, we need around Rs 50 crore at the end of completing this project, which we may do by borrowing. But the rest of the things will be from the internal process,” the top executive added.

Shares of Balaji Amines gained 1.3% in Thursday’s intraday trade to touch a high of Rs 2,051 apiece on the NSE. At 3:12 pm, the stock was trading at 2,047.9 per share, compared to Nifty 50 trading 1.5% lower at 23,915.30.