Balaji amine
Takeaways from the earnings conference call:
Balaji Specialty Chemicals (BSCPL): The company commenced the commercial
production of Ethylene Diamine (EDA) and Piperazine in Q2FY20. 4QFY20
revenue/EBITDA from BSCPL stood at INR 210/9mn representing 2.2/0.5% of
consol Sales/EBITDA. The plant’s utilisation is expected to rise to 30-40% by Mar-
22. At full utilization, the subsidiary should contribute INR 2.5bn to the BAL’s
consolidated topline, i.e. 27% of BAL’s sales in FY20.
Gross debt: Compared to INR 1bn in short term debt taken by the standalone
entity, consol debt stands at INR 2.4bn. This is largely owing long term
borrowings of INR 1.3bn taken by BSCPL.
The Greenfield project: The commercial production has been pushed back to
Mar-21 (earlier, Dec-20).
Capex: BAL has spent INR 720mn on the Greenfield project and plans to incur an
additional INR 700-750mn in FY21.
1QFY21: Plant utilisation stood at 70-75% in April, 80-85% in May and at pre-
Covid-19 levels in June. BAL’s hotel continues to remain inoperative in the
current environment. Fixed cost from this business stand at INR 2.2mn/month.
Acetonitrile: BAL is currently producing ~5-6ktpa of Acetonitrile, whose prices
are expected to remain elevated in the near term as the alternate process to
produce acetonitrile is currently economically unviable.