Ami Organics FY2023 Annual Report is quite detailed and informative. Some highlights:
- Total revenue for the year increased 18 % from Rs.520 crore to Rs.617 crore. Exports are 59 % of the revenue and grew 21 % for the year.
- Pharma intermediate revenue was Rs.518 crore and Speciality Chemicals revenue was Rs.99 crore.
- Operating profits grew 18 % from Rs.104 crore to Rs.123 crore. OPM stood almost flat at around 20 %. PAT for the year increased from Rs.72 crore to Rs.83 crore
- Cash flows have turned positive as supply chains have returned to normal. CFO for the year was Rs.66 crore which still lags PAT. Capex was Rs.96 crore. Dividend has been retained at Rs.3 per share giving a payout ratio of around 13 %.
- Expenditure on R & D stood at Rs.7.7 crore which was 1.25 % of revenues
- Promoter remuneration was at 1.5 % of sales. The promoters are giving themselves a hike in the forthcoming AGM.
- The total manufacturing capacity stands at 6,060 MTPA and reactor capacity at 436 KL.
- In the current year, 60 new customers were added and 70 new products introduced.
- Company has developed two electrolyte additives for Lithium-Ion batteries and these products are in final stages of vendor qualification.
- Entered into a definitive agreement to sell advance pharma intermediates to Fermion. This is a multi-year, multi-tonne, multi-million Euro agreement for being the exclusive supplier for the product
- Shifted many of the top products with high volumes to flow technology
- Sachin unit is expected to reach its full capacity shortly. During the year, company has acquired an industrial plot admeasuring 8000 sq. metre in Sachin, Surat and has been developed as Warehouse II for catering to the incremental warehousing requirement
- Capex planned at Ankleshwar site is of Rs. 190 crore and it will help in robust growth till 2028 when it will reach its maximum capacity. The Project is on track and is slated to commence the production activity in Q4 FY24
- Announced the acquisition of Baba Fine Chemicals which manufactures super niche chemicals for the semiconductor industry. This acquisition will help foray into a very high entry barrier semiconductor industry with a strong brand name of Baba Fine Chemicals. Baba Fine Chemicals makes very high purity chemicals, Part per trillion kind of purity with its main application in photo resistance chemicals in semiconductor industries
- In the majority of the products, Ami Organics is First-to-Market. Has capability to manufacture a product from stage N-1 to stage N-8 using a single intermediate utilising diverse synthesis technique
- Company’s key products have a global market share of 70 to 80%
- Almost 73% of the raw materials are procured from domestic vendors
- Key export areas – Spain 18 %, Italy 34 %, Finland – 19 %
- Customer concentration – 58% of revenue generated from top 10 customers in FY23. Top clients for Pharma intermediates are Organike, Sun Pharma, Midas Pharma, Cipla, Zydus, Lupin etc. Top clients for speciality chemicals are Sharon Laboratories, Bayer, Himalaya etc.
- API business – 50 to 90 % market share in key molecules, 40 new customers added during the year, 185 customers cumulative, 60 new products launched during the year, 2 manufacturing facilities at Surat & Ankleshwar
- Spec Chem business – 300 customers, 1 manufacturing facility at Jhagadia, 3 new products launched during the year, 20 new customers added and 50 products cumulative. In Jhagadia, 15,830 square metres of land is available for brownfield expansion
- Speciality chemical business is expected to grow faster than the core pharma intermediate business.
- On Ami Onco-Theranostics (JV): The joint venture company along with its co venturer Photolitec LLC has developed several technologies for cancer imaging and therapy and few of the Protocols for cancer treatment have received FDA approval in USA. Phase II clinical trials for Photodynamic Therapy (PDT) for usage in variety of cancers are ongoing. However, commercialisation of joint venture company’s products / technology is awaited upon receipt of necessary regulatory approvals
(Disc.: Holding)
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