Alkyl Amines conducted their conference call today at 4 pm.
Here are the key takeaways 😃
Here are the key takeaways 😃
Business Updates:
• Much of growth contributors was value growth.
• Around 1/3 growth delivered by volume and 2/3 in volume. There were certain supply chin issue, leading to lower growth ion volume.
• Much of growth contributors was value growth.
• Around 1/3 growth delivered by volume and 2/3 in volume. There were certain supply chin issue, leading to lower growth ion volume.
Growth:
• Co. is fairly optimistic on volume, with respect to sales in Pharma, as Pharma is going well.
• 3-5 year Volume growth target: 15%+ CAGR.
• There can be mid blip due to expansion.
• Co. is fairly optimistic on volume, with respect to sales in Pharma, as Pharma is going well.
• 3-5 year Volume growth target: 15%+ CAGR.
• There can be mid blip due to expansion.
Acetonitrile:
• Alkyl does not have much higher share, while most of the acetonitrile is imported, which co. is targeting. Hence co. added expansion here.
• Co. focusing on increasing the domestic share, while there is big export market, but not targeting as of now.
• Alkyl does not have much higher share, while most of the acetonitrile is imported, which co. is targeting. Hence co. added expansion here.
• Co. focusing on increasing the domestic share, while there is big export market, but not targeting as of now.
Methyl Amines:
• Increase in capacity of ~150 Tonnes per day, which was completed last year.
• Already expanded DMA, HCL derivatives, and most of it is internally consumed.
• Increase in capacity of ~150 Tonnes per day, which was completed last year.
• Already expanded DMA, HCL derivatives, and most of it is internally consumed.
Ethyl Amines Investment:
• CAPEX would be 300 cr. This will increase capacity by 30%.
• Certain part is internally consumed.
• CAPEX would be 300 cr. This will increase capacity by 30%.
• Certain part is internally consumed.
Revenue Mix:
• Agrochemical and Pharma has 70% contribution of which Pharma shares ~45% of total revenue.
• While rest is from Dyestuff, Water Treatment, Rubber Chemical and miscellaneous sector.
• Agrochemical and Pharma has 70% contribution of which Pharma shares ~45% of total revenue.
• While rest is from Dyestuff, Water Treatment, Rubber Chemical and miscellaneous sector.
Capacity Utilization:
• Most plants are running at fairly high utilization, and there some head room. But not much higher, hence expansion added.
Margin:
• This year quarter margin was decline due to increase in raw material price.
• Most plants are running at fairly high utilization, and there some head room. But not much higher, hence expansion added.
Margin:
• This year quarter margin was decline due to increase in raw material price.
Industry Growth:
• Lost of SME and MSME has started using domestic product.
• Supply Chain is not that difficult nowadays.
• While business is seeing good growth in India.
• Lost of SME and MSME has started using domestic product.
• Supply Chain is not that difficult nowadays.
• While business is seeing good growth in India.
Covid:
• 2nd wave impacted many employees of Alkyl, with respect to last year. However now there is recovery and 80-90% are recovered and there is not much impact on plant.
• 2nd wave impacted many employees of Alkyl, with respect to last year. However now there is recovery and 80-90% are recovered and there is not much impact on plant.
CAPEX:
• De-bottlenecking existing capacity, and is Scouting for land.
• Acetonitrile will have expansion 120cr.
• This year spend was ~150 cr and next year expense is targeted to be ~200cr.
• There is headroom of land in Kumkum and Dahej and new land to be acquire next year.
• De-bottlenecking existing capacity, and is Scouting for land.
• Acetonitrile will have expansion 120cr.
• This year spend was ~150 cr and next year expense is targeted to be ~200cr.
• There is headroom of land in Kumkum and Dahej and new land to be acquire next year.
Plans:
• Previously, Alkyl has grown 10-15% in terms of volume and co. is not seeing any slowdown in this volume growth (with some exception)
• India is growing well, which will have domestic growth in amines segment.
• Previously, Alkyl has grown 10-15% in terms of volume and co. is not seeing any slowdown in this volume growth (with some exception)
• India is growing well, which will have domestic growth in amines segment.
Customers:
• Almost 99% of the customer are repeat customer.
• All the top 10 customers of co. are 10 years old customers and certain are 30-40 years old.
• Almost 99% of the customer are repeat customer.
• All the top 10 customers of co. are 10 years old customers and certain are 30-40 years old.
Management Bandwidth:
• There are younger people in the team who are already in the team from past few years, which can lead the company in future.
• There are younger people in the team who are already in the team from past few years, which can lead the company in future.
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