Balaji Amines, a Solapur-based company, engaged in the manufacture of Aliphatic Amines and other amines, published its Q3FY21 earnings yesterday late evening and the stock just cannot stop zooming.
The stock price zoomed up over 19.5% to hit a new high today at Rs.1514 and not too far from its 20% UC of the day at Rs.1518.30. Volumes are up almost 8-times.
It reported a 162% (YoY) jump in net profit at Rs.70 crore on a 64% jump in total income at Rs.367 crore.
Total sales volumes was up 34%. EBITDA rose by a huge 116% at Rs.99 crore and margins surged by 647 bps to 26.92%. The improvement in operating margins was primarily on account of improvement in operating leverage due to increase in volume offtake and better price realization.
The company said that there is sustained growth of Indian pharma industry on account of ‘China Plus One’ business strategy being adopted by western companies and price realizations have also continued to remain healthy. It is also exporting a few of its products from its subsidary and Morpholine to China, which previously used to get dumped in India.
The prices of Dimethyl Formamide (DMF) have risen sharply because of supply-demand mismatch, leading to improved capacity utilization of our DMF plant.
Its capex plans are on track. As part of Phase 1 of Greenfield Project, it is likely to commence manufacturing of Ethlylamines by end of FY21 and plans to commence the manufacturing of Dimethyl Carbonate (DMC) by the end of Q2FY22.
The company said, “The prospects of agrochemicals look robust on account of improved overall dynamics for agriculture sector in terms of highest water storage across reservoirs for last five years and increased acreage under cultivation. This should bode well for improved performance for our subsidiary company in coming quarters.”