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This Article is From Aug 05, 2021

Alkyl Amines Q1 Review - Continued Capacity Addition In The Space To Impact Margins: Motilal Oswal

Alkyl Amines Q1 Review - Continued Capacity Addition In The Space To Impact Margins: Motilal Oswal
A solutionis poured into a glass flask in the control laboratory. (Photographer: Andrey Rudakov/Bloomberg)
STOCKS IN THIS STORY
Alkyl Amines Chemicals Ltd.
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BQ Blue's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BloombergQuint's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Alkyl Amines Chemicals Ltd. reported revenue in line with our estimates, while Ebitda was 18% below our estimate due to margin contraction.

Gross margin contracted QoQ (by 810 basis points) to 49% in Q1 FY22 – the lowest level in the last eight quarters.

Raw material price inflation is likely to continue over the next couple of quarters due to a demand-supply mismatch in the global commodity markets (as global economies revive to normal levels), coupled with high freight costs.

Alkyl Amines is expanding its Acetonitrile capacity by 15 kilo tonnes per annum to 27ktpa – making it the largest producer with expected commissioning by Q3 FY22.

Click on the attachment to read the full report:

Motilal Oswal Alkyl Amines Q1FY22 Result Update.pdf
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