Ami Organics Q1 FY 23 results -Press release
Q1FY23 Revenue up 15.8% YoY, EBITDA up 7.1% YoY PAT up 8.3% YoY
Commenting on results, Mr. Naresh Patel, Executive CMD said: “I am happy to share that we have entered the new financial year on a positive note amidst a challenging global environment. Our Revenues for the quarter grew steadily at 16% on a YoY basis to Rs. 131cr. This was driven by the export market and specifically innovator-driven business.
Our gross margins improved for the quarter due to a better product mix, cost optimization
measures, process improvement measures, the use of new technology, and most importantly
our ability to pass on the incremental cost to our customers.
The EBITDA margins remain stable on a sequential basis weighed down by higher energy prices and lower EBITDA of the specialty chemicals business.
Electrolyte additive samples are with customers across the world at various stages and commercialization of the product towards the end of this year.
Planning to launch two new products under the import substitute business vertical which are in the Agrochemicals space. Commercialization of the same in the 2nd half of FY23.
Overall, even though we are seeing some demand rationalization for the pharmaceutical
industry, our core products continue to see strong demand and that makes me optimistic
about delivering sustainable growth for the financial year 2023.”
Key Results Highlights (Consolidated):
Revenue from operations for Q1FY23 grew by 15.8% YoY to Rs.1,310mn.
The gross margin for Q1FY23 improved to 48.8%, an increase of 572bps on YoY basis and
467bps on a sequential basis. The Margin expansion was driven by a better product mix, cost optimization measures, process improvement measures, and the use of new of technology.
EBITDA for the quarter came at Rs. 237mn up 7.1% as compared to Rs. 221mn in Q1FY22.
EBITDA margins for the quarter were at 18.1% as compared to 19.5% Q1FY22 and 18.0%
in Q4FY22. We have been able to maintain our EBITDA margin on a sequential basis
which is suppressed due to higher energy, and freight cost as well as lower EBITDA margins
of the Specialty Chemical business.
PAT for the quarter was at Rs. 149mn up 8.3% on YoY basis. The PAT margins for the
quarter were at 11.3% as compared to 12.1% in Q1FY23.
In Q4FY22, Company received a TAX benefit which resulted in a 4% tax for Q4FY22. This
led to a higher PAT margin in Q4FY22. If you remove the impact on Tax benefit, PAT for
Q1FY23 is maintained on a sequential basis.
Key Business highlights:
One-off expense of loss on sale of the asset is related to the demolition of the civil structure at the Ankleshwar site.
Electrolyte additive update:
o China: First samples sent to clients are approved. Larger samples are sent to the client which is at an advanced stage of qualification.
o Europe: Sent samples to customers for the initial approval
o India and Korea: Engaged with several customers for the product
Import Substitute Product Updates: Plan to introduce two new products in the current
financial year which will cater to the Agrochemicals industry. Expect to commercialize
these products in the second half of the fiscal year.
We have ordered flow reactors for a couple of more existing products and expect them
to shift to continuous flow in the second half of FY23.
Capex Update: Company has received Environmental clearance. Excavation work is
completed. Civil construction is started. Started ordering machinery for the plant.
Investor Presentation:
2d27d16a-1243-4973-96b6-488f82075a49.pdf (bseindia.com)
Q1FY23 results:
8c59d867-a9e6-4c2c-a8b3-e04f43d17e78.pdf (bseindia.com)
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