Alkyl Amines Chemicals (506767) Q2 24/25 earnings summary

Executive summary

• Half-year performance improved over last year, driven by satisfactory volume growth and significant increases in revenue and profit after tax.

• Revenue from operations for the quarter ended September 30, 2024, was ₹414.89 crore, up from ₹352.15 crore in the same quarter last year.

• Profit after tax for the quarter was ₹47.46 crore, compared to ₹27.24 crore year-over-year.

• Volume growth for H1 FY25 was 8%-10%, with Q2 FY25 seeing a 17% year-over-year increase, though last year's comparable quarter was weak.

• Growth was seen in both domestic and export markets, with life sciences (pharma and agrochemicals) accounting for 65%-70% of turnover.

Financial highlights

• Margins were squeezed by about 2 percentage points quarter-over-quarter due to finished goods prices dropping more than raw material prices.

• Total revenue for the quarter was ₹424.05 crore, a year-over-year increase from ₹354.50 crore.

• Expenses for the quarter were ₹359.72 crore, up from ₹318.07 crore in the same quarter last year.

• Earnings per share (basic) for the quarter stood at ₹9.28, compared to ₹5.33 in the prior year.

• Cash and cash equivalents as of September 30, 2024, were ₹103.84 crore, up from ₹30.37 crore at March 31, 2024.

Outlook and guidance

• Management expects to achieve around 10% volume growth for FY25, similar to the previous year.

• Margin improvement is targeted but not at the expense of volume growth; focus remains on expanding volumes.

• CapEx guidance: INR 80-100 crores for FY25 and INR 100-120 crores for FY26.

• No guidance provided for FY27 CapEx.

• The company continues to focus on its specialty chemicals segment, with no change in segment reporting.