Alkyl Amines Q4 Review - Margins Subdued Amid High Raw Material Cost: 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 a beat in revenue versus our estimate, with Ebitda being 15% above our estimate. Gross margin contracted in line with our estimate at 44% in Q4FY22 – the lowest in the last 11 quarters. Hence, the downward trend in margin continues. Raw material prices continue to rise along with an increase in other expenses that pose a challenge for Alkyl Amines to resurrect its margins. Energy costs shot up sharply, especially in H2 FY22, with coal and ammonia being the major drivers of this price rise. However, the company did manage to pass on some costs to the end-customers. Ebitda margin was the lowest in the past 12 quarters at 17.3% in Q4 FY22. That being said, capacity expansion in Methyl and Ethyl Amines and capacity utilisation ramp up of the recently expanded Acetonitrile plant should drive better margins in FY23-24E for Alkyl Amines..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 Q4 Review - Margins Subdued Amid High Raw Material Cost: Motilal Oswal

Alkyl Amines Q4 Review - Margins Subdued Amid High Raw Material Cost: Motilal Oswal

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