Revenue:
• Revenue increased by 53% year-on-year (y-o-y) in FY23, driven primarily by strong sales growth in EDA. Export revenue surged by 112% y-o-y to ₹ 261 Cr. (33% of sales) in FY23, reflecting expanding export opportunities.
• The company's growth was fueled by rising demand from the Indian chemical industry, particularly from the pharma, agro, and specialty chemicals segments. In FY23, 15% of the company's sales were sourced from its parent company, while 37% of its raw materials were procured from the same source. Capacity utilization increased from 56% to 72% in FY23, enabling the realization of economies of scale.
• The company's profits grew by 62% y-o-y in FY23. Despite stable gross margins, PAT margins improved from 22% in FY22 to 23% in FY23, indicating enhanced profitability.
Investment Thesis:
Key StakeHolders: Balaji Amines Ltd. (BAL) the company's promoter is a leading manufacturer of specialty chemicals in India. BAL has a strong focus on research and development and has developed a number of proprietary technologies for the production of specialty chemicals. BAL is listed in the domestic bourses and is an eminent player of Indian Chemical Sector.