NDTV Profit'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 NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Alkyl Amines Chemicals Ltd.'s Q4 FY24 revenue declined 14% YoY to Rs 3.6 billion, with agrochemicals seeing destocking and pharma witnessing demand stabilisation. Sales volumes increased from the pharma sector.
Gross margin expanded 270 bp YoY to 49.2%, while Ebitdam expanded 50 bp to 19.3% in Q4. Profit after tax declined 21% YoY to Rs 385 million (our estimate Rs 314 million).
The management noted that H2 FY24 was weaker than H1 FY24, with average utilization of 55% across plants in H2. Volumes were subdued mainly due to Acetonitrile and Mono Isopropyl amine. However, product prices were stable in Q4. Raw material prices also declined, with sequential margin gains.
A new Ethylamines plant was commissioned in FY24, which saw utilization of 60% in H2.
Alkyl Amines has a larger market share than competition, and with steady growth in demand (5-7% every year) and improved margin, the management is confident to maintain its market share despite capacity expansion by competition.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
