Ami Organics Q4 Results Review - Pricing In Positives: HDFC Securities

HDFC Securities Institutional Equities

Ami Organics Ltd.'s revenue grew 30/22% YoY/QoQ at Rs 1,864 million led by a robust growth in the advanced pharma intermediates business. Ebitda grew 58/33% YoY/QoQ to Rs 409 million, with the Ebitda margin coming in at 21.9% (+396/+171bps YoY/QoQ).

Ebitda margin improved on account of a higher operating leverage. Adjusted profit after tax grew 28/22% YoY/QoQ to Rs 272 million.

Management call takeaways:

• Ami Organics has expanded the scope of the Fermion contract to add more advanced intermediates for the same active pharma ingredient resulting in an increase in the contract .

• Samples of electrolyte additives have been sent to six customers by the company and the company expects commercial supply to commence by Q1 FY24. The company developed two new products, one liquid electrolyte additive to increase electrocapacity of Li batteries and one for the solid battery.

• The company added 40 new customers in its advanced pharma intermediates business, and 20 new customers in its speciality chemicals business in FY23.

• Exports formed 59% of the revenues in FY23.

• The Ankleshwar facility shall come on stream in December 2023.

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