Specialty chemicals company Balaji Amines expects to earn Rs 2,400 crore to Rs 2,500 crore in revenue on a consolidated basis for the current financial year, according to managing director D Ram Reddy.
Based on the guidance, this implies a revenue growth of 3-7 percent compared to FY22, during which the company earned Rs 2,335 crore in revenue.
"The last month has been slow, but we have seen improvement. We expect the upcoming six months to cover the revenue shortfall," Reddy told CNBC TV-18 in an interview.
Balaji Amines received environmental clearance and permission from the Maharashtra Pollution Control Board (MPCB) to begin operations at the Phase 1 of the greenfield project in Solapur. Phase 1 will involve production of Di-Methyl Carbonate (DMC) / Propylene Carbonate (PC) and Propylene Glycol (PG), each of which will have installed capacity of 15,000 MTPA.
In an exchange filing on September 14, the company said phase-1 of the 90-acre greenfield project in Solapur was complete, and the plant would commence commercial production by the end of this month. It believes the expansion will give them a strategic advantage as it is the sole manufacturer of Di-Methyl Carbonate and Propylene Carbonate in India. It aims to achieve 60-70 percent capacity utilisation during the first year of operations.
For the remaining six months of the year, Reddy expects the new unit to contribute Rs 100 crore in revenue while at peak production, the contribution can ramp up to Rs 150 crore to Rs 200 crore. The sustainable margin profile for these products would be clear over the next two quarters, according to Reddy.
The company has another four products in the pipeline for which construction has already begun for two of them. "Two of these plants will come on stream over the next 7-8 months," Reddy said. In addition, the company has also applied for two other products, which according to Reddy would take time to get clearance from the government.
Once the new products come on stream, Reddy expects the company to hit Rs 4,000 crore in annual revenue by FY26.
Other Key Takeaways:
Shares of Balaji Amines are down 3.6 percent at Rs 3,275.25. The stock is down 30 percent over the last 12 months.
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