Balaji Amines experienced a 3% increase in its stock value following the Maharashtra government's grant of mega project status to its subsidiary on January 4. The subsidiary, Balaji Speciality Chemicals Limited, secured the mega project status for the 'Expansion Project for Manufacture Speciality Chemicals,' with a proposed investment of Rs 750 crores, as disclosed in the company's exchange filing.

The company is set to embark on a capital expenditure (capex) for a new product, n-Butylamine, with a production capacity of 15,000 metric tons per annum. This chemical serves as a crucial component in the manufacturing of pharmaceuticals, active pharmaceutical ingredients (APIs), pesticides, and emulsifiers. The anticipated annual domestic demand for n-butylamine is 8,000 tons.

However, Balaji Amines faced challenges reflected in its financial performance. In the July-September quarter of FY24, the company reported a 39% year-on-year decline in consolidated revenue, reaching Rs 387 crore. The consolidated profit after tax (PAT) also fell by 69% YoY to Rs 61 crore during the same period. Additionally, the consolidated earnings before interest, tax, depreciation, and amortisation (EBITDA) dropped by 66% YoY to Rs 61 crore in Q2FY24.

These weakened earnings were attributed to challenges in the speciality chemical industry, where rapid fluctuations in input costs resulted in lower landed costs of imported competitor products. This, in turn, impacted Balaji Amines' ability to maintain fair pricing for its products.

Balaji Amines, recognised as the largest manufacturer of Aliphatic Amines in India, boasts a diverse product portfolio with a total capacity of 2,31,000 metric tons per annum. The company predominantly supplies its products to the pharmaceutical, paints and resins, and agrochemical industries.