Originally posted by abhishekbasu Balaji Amines had a conference call on July 28, 2011. Here are the key takeaways from it:- Methyl Amine capacity is getting increased from 24,000 to 54,000 tons Production of dimethylformide is to start by end of 2013. Total capacity planned is 30,000 tons. Currently, only RCF manufactures this in India and has a capacity of 5,000 tons. India imports the rest of the demand of around 30,000 tons. After Balaji's capacity comes online, India may be in a position to meet all of its needs domestically with some export opportunities as well. The expected revenue from both these initiatives from a 3-year timeframe (2014-15) is about 350 cr. 180 cr is expected from the methyl amine expansion and another 170 cr from  dimethylformide. The company has filed for European DMF for PVP K30. It will take about 6-8 months to get approval. Once approved, the company will be able to export PVP K30 to Europe. The interest costs have gone up dramatically from 9-10% to 13.5-14% currently. This has resulted in high interests costs this quarter and is likely to remain like this for the next few quarters. Prices of key raw materials have also increased after accidents in BASF and Nan Ya Plastics, two large global suppliers. The company has a capex plan of 70 cr out of which 50 cr is for the methyl amine expansion and 20 cr for setting up dimethyl formide production. Company has a working capital loan of about 80-85 cr and total loan book of 157 cr. The newly added capacities are working at 40-50% of capacity currently. The company is targeting a topline of 420-450 cr in FY12 The company is targeting a bottomline of 47-48 cr in FY12 The promoter holds 54% of the company's stock and another 20% is held by close relatives. 20% of promoter holding is pledged to banks to get beneficial terms for the term loans.

Last 3 weeks methanol is up 10% from 340 to 370 $ per ton

Conference Call      
          Balaji Amines
Setting up a new project for manufacturing Methyl Amines (100 tonnes pd), Dimethyl Formamide (70 tonnes pd) and Dimethylamine Hydrochloride (36 tonnes pd)


Balaji Amines held a conference call on 4 November 2011 for discussing the results for the quarter ended September 2011. Mr. D. Ram Reddy, Director addressed the call.

Conference Cal Highlights
Despite the depression in European markets, Balaji Amines performed well during the half year ended September 2011. It recorded net sales of Rs218.69 crore for the half year ended 30 September 2011. Net Sales increased by around 28.53% for the period over the previous years' first half of Rs 170.14 crore
Profit after Tax increased by around 10 % over previous half years' Rs 16.21 crore to Rs 17.79 crore for the current year's first half.
Exports during the period ending 30 September 2011 have gone up by 31% from Rs 41.63 crore   of previous year 2010-11   to Rs 54.58 crore for first half year during current year 2011-12.
Net profit of Balaji Amines improved 6.41% to Rs 10.63 crore during the quarter ended September 2011 as against Rs 9.99 crore during the previous quarter ended September 2010. Sales rose 14.18% to Rs 104.17 crore in the quarter ended September 2011 as against Rs 91.23 crore during the previous quarter ended September 2010.
The company is setting up a new project for manufacturing Methyl Amines for a capacity of 100 tonnes per day, Dimethyl Formamide for a capacity of 70 tonnes per day and Dimethylamine Hydrochloride for a capacity of 36 tonnes per day. The cost of the project is Rs 60 crore and work on the project is under execution. Of the total cost of the project, Rs 40 crore has been funded through debt from State Bank of India and the rest from internal accruals.
Methyl Amines, product would be manufactured from January 2012, Dimethyl Formamide from April 2012 and Dimethylamine Hydrochloride from June / July 2012. The total revenue from the new projects along with the already existing capacity would grow up by another Rs 900 crore.
The consumption of Dimethyl Formamide is 30000 tonnes per annum in India.
The company along with other projects, is also setting up a Five Star Hotel at Solapur in Maharashtra with a capacity of 100 room. The cost of the project is Rs 55 crore, of which Rs 30 crore to Rs 40 crore has already been spent. The cost of the project has gone up from its earlier estimates of Rs 40 crore. The hotel is being constructed on the company's own land. The project is expected to be completed by June 2012, however the company is confident that it would commission it in December 2011. The project is an eco friendly project. A formal agreement with SAROVAR Group of Hotels has been entered for operating / managing the Hotel property in the name of BALAJI SAROVAR PREMIER.
Drug Master File applications have been successfully filed both with US FDA and EU Authorities for its new product Pharmapure Povidone (Polyvinyl Pyrrolidone K-30).

Decent results from Balaji Amines...

	Q3'12	Q3'11	%Change
Sales	112.6	96.68	16.47%
PAT	10.77	8.72	23.51%
EPS	3.32	2.69	23.42%