Alkyl Amines Q3 Results Review - Performance Hurt By Price-Led Decline; Volume Guidance Intact: Motilal Oswal

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Alkyl Amines Chemicals Ltd. reported marginally lower-than-estimated revenue in Q3 FY23. Decline in prices of some products hit its Q3 performance. Though gross margin was steady at 49%, Ebitda came in below our estimate at Rs 697 million with Ebitdam at 17.9% (down 190 basis points QoQ). Demand from the pharmaceuticals sector for two of its products (Ethyl Amines and DMAPA) has been hit by inventory buildup and supply chain constraints. That being said, the long-term guidance of 10-15% volume growth remains intact as the management focuses on volume growth. Capacity expansion of Ethyl Amines in Kurkumbh (100 tpd capacity) is on track and it is likely to be commissioned by May/Jun-23, with mechanical completion being planned in Apr-23. Capex envisaged for the same is Rs 4 billion. Alkyl Amines had previously announced that it would be manufacturing four to five new products in the specialty segment, which would be developed in its own research and development labs. The company dispatched the first tanker of one of the products in Feb-23 with the other products to be commissioned by Sep-24E..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Alkyl Amines Q3 Results Review - Performance Hurt By Price-Led Decline; Volume Guidance Intact: Motilal Oswal

The company dispatched the first tanker of one of the products in Feb-23 with the other products to be commissioned by Sep-24E.

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