Balaji Amines Q2 Results Review - Significant Decline In Revenue Due To Drop In Price Realisation: KRChoksey

KRChoksey Report

Result Highlights of Q2 FY24:

• For Q2 FY24, Balaji Amines Ltd. revenue declined by 39.4% YoY and 17.9% QoQ to Rs 3,805 million while for H1 FY24 revenue declined by 34.9% YoY to Rs 8,442 million. This heavy decline in sales is due to a drop in price realization and destocking among global companies.

• Adjusted Ebitda declined by 68.9% YoY and 45.1% QoQ to Rs 538 million while for H1 FY24 Adj Ebitda declined by 60.9% YoY to Rs 1,518 million. Adj Ebitda margin contracted 1,345 basis points YoY and 701 bps QoQ to 14.1% while for H1 FY24 Adj Ebitda margin contracted 1191 bps to 18.0%. This was due to intense competition from China and usage of high cost inventory.

• Profit after tax declined by 62.5% YoY and 34.2% QoQ to Rs 347 million while for H1 FY24 PAT declined by 59.4% YoY to Rs 874 million. PAT margin contracted 563 bps YoY and 225 bps QoQ to 9.1% while for H1 FY24 PAT margin contracted 625 bps to 10.4%. This quarterly decline is due to weak operating performance.

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