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May 15, 2018 03:20 PM | Business

Balaji Amines eyes Rs 1,000 crore revenue in FY19

Chemical manufacturing company, Balaji Amines, is eyeing a revenue of Rs 1,000-1,050 crore in FY19, said D Ram Reddy, joint MD of the company.

Strong growth led by company's amines division help Balaji Amines posted a good set of earnings this quarter. But EBIT loss in the hotel division expanded.

Balaji Amines' revenue for Q4 FY18 were up 33% at Rs 257 crore against Rs 193 crore posted in Q4 FY17. EBITDA was up 23% but operating profit margins were a bit low at 18.2% compared to 19.6% posted in the same quarter last fiscal. The cost of materials went up 66% at Rs 154 crore in the quarter.

Sharing further details of fourth quarter performance and the outlook going forward, D Ram Reddy, Joint MD, Balaji Amines said the capacity utilisation of the di methyl formamide (DMF) plants was only 20-25%, but that of other plants was more than 80%.

The company's Acetonitrile plant is also ready and is awaiting for NoC from wildlife sanctuary, which may come in months’ time, said Reddy.

On the margin front, he said the fourth quarter margins were partly impacted because of higher raw material price.

Going forward, in the first quarter of FY19 margins should improve, said Reddy.

As of now, there are no plans of hiving off the hotels business, said Reddy, adding that they expect around Rs 25-30 crore revenues from the business in the coming year.

Balaji is planning  to become debt free in the next six months, said Reddy.

 
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