Ami Organics – Pharma Intermediates & Specialty Chemicals

Export at 37%; domestic business at 63%
o Export – Exports were lower as for some of the products customer changed the API supplier from overseas
to India
✓ Advance Pharmaceutical Intermediates
o Fermion contract: Validation batches have been sent. We are expecting to start the production from
Q4FY24 onwards.
✓ Specialty Chemicals
o Strong volume traction in Methyl Salicylate and Parabens. Post introduction of flow chemistry process for
Methyl Salicylate, we are now globally competitive.
✓ Electrolyte additives update
o Electrolyte samples approved at plant trial scale by 6 customers.
o We are in advance stages of negotiation of contract with couple of customers.
✓ Capex Update
o Civil work for production and admin block completed. Tank farm and warehouse is more than 60%
completed. Machinery installation is in progress in block-1.
o Started the recruitment process for the new facility. On track to commence the production activity in Q4
FY24.

Concall highlights:

• The Pharmaceutical Intermediates business grew by 5% during Q1 FY24, with slower growth in the export market but robust traction in the domestic market.
• The Specialty Chemical business saw a 25% year-on-year increase in revenue, driven by streamlining operations and upgrading processes.
• The company is close to signing contracts for electrolyte additives with larger-than-anticipated contract sizes.
• The company aims to improve EBITDA margins by 50 to 100 basis points every quarter in the Specialty Chemical business.
• The Fermion contract is a long-term contract with one product, and the company expects sizable orders and revenue from it.
• The company expects the Specialty Chemical business to grow sustainably, with a focus on technology aggregation and cost-effectiveness.
• The company is confident in achieving 20% to 25% growth in revenue for FY24, despite current pricing pressures in the market.
• CAPEX plans include dedicating one block in Ankleshwar to the Fermion contract and exploring opportunities for future products and customers.
• Better pricing in the electrolyte market compared to China is anticipated due to customer preferences and market dynamics.
• The company aims to improve EBITDA margins in the pharmaceutical intermediate business by 50 to 100 basis points compared to the previous year.
• Margins in the electrolyte business are expected to be similar to or better than the current margins.