Chemical maker Balaji Amines Ltd. expects to cross the Rs 1,000-crore revenue mark for the first time this fiscal as raw material prices fell and demand for fertiliser rose ahead of winter crop sowing.
“There will be a 15 percent overall growth in the amines market if agro-chemicals sector takes a boom in the fourth quarter,” said Joint Managing Director D Ram Reddy told BloombergQuint in an interview. “There is also no input threat as less than 5-7 percent of materials are imported and methanol prices have remained stable for the last three-four months.”
Also, the company's specialty chemical arm is expected to contribute Rs 300-400 crore to the revenue from next year, Reddy said. “The new products launched in the current quarter is expected to drive 10 percent growth in volumes.”
Shares of the Secunderabad-based firm fell 3.6 percent to Rs 324.60 apiece. That compares with a 0.5 percent gain in the Nifty 50 Index.
Q2 Results Highlights (YoY)
- Revenue up 5.1 percent at Rs 228.72 crore.
- Net profit rose 1 percent to Rs 31.43 crore.
- Ebitda remained flat at Rs 46.23 crore.
- Operating margin stood at 20.2 percent against 21.3 percent.
Watch | Balaji Amines' D Ram Reddy on the company's second-quarter performance and more:
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