Balaji Amines shares extend fall for second straight day after weak Q1 results

Shares of specialty chemicals manufacturer Balaji Amines dropped for a second straight day on Friday after the company reported weak results for June quarter (Q1FY24).  In its earnings report, released on Thursday, August 31, the company reported a sharp drop in profit after tax (PAT) and revenue year-on-year for the quarter ending June 30, 2023.

The company also registered a drop in earnings per share (EPS) and margins in Q1FY24 as compared to the previous quarters.  

Balaji Amines reported a revenue of Rs 469.32 crore in the first quarter of FY24, marking a sharp decline of 30.7 per cent year-on-year compared to  Rs 674.86 crore reported in the same quarter a year ago. The company’s profit after tax (PAT) stood at Rs 67.68 crore in June quarter compared to Rs Rs 148.04 crore in the year-ago quarter. PAT dropped 54.28 per cent year-on-year.

Balaji Amines reports drop in EBITDA and margins

The company’s EBITDA (earnings before interest, taxes, depreciation, and amortisation) declined 52.76 per cent YoY to Rs 103.69 crore in Q1FY24 as against Rs 219.48 crore in Q1FY23.

Its EBITDA margin for June quarter stood at 22.09 per cent as against 32.52 per cent in the year-ago quarter.  

Earnings per share also dropped to Rs 16.28 per piece in June quarter as against Rs 37.95 in Q1FY23.

Total volumes stood at 26,820 MT for Q1FY24 as against 27,358 MT in the same period a year ago.

Earlier, the company delayed its first quarter results due to the unavailability of the management. The company earlier planned to release the June quarter results by mid-August, however, it was delayed after five independent directors resigned in May.

Balaji Amines stock performance

Shares of Balaji Amines were trading 0.97 per cent lower at Rs 2221.25 apiece on BSE at 1:03 PM on Friday. The stock has extended losses for the second straight day after the release of June quarter results. Shares of Balaji Amines closed at Rs 2242.95 apiece, down 3.23 per cent on BSE on Thursday.

The specialty chemicals stock has dropped 18 per cent in the past one year and 36 per cent so far this year.