AMI Organics reports 30% Revenue growth backed with healthy EBITDA and PAT margin

 

·        Revenue up 30% YoY to Rs. 1,864 mn

 

·        EBITDA margin improved to 21.9%

·        PAT margin at 14.6%

Surat, May 14^th, 2023: Ami Organics Limited (AMI) (BSE: 543349, NSE: AMIORG) today reported financial results for the Quarter and Year ended March 31^st, 2023.

Consolidated Financial Results – Q4 & FY23

Particulars (Rs. Mn)	Q4FY23	Q4FY22	YoY	Q3FY23	QoQ	FY23	FY22	YoY
Revenue from Operations	1,864	1,435	29.8%	1,524	22.3%	6,167	5,201	18.6%
Gross Profit	813	634	28.3%	700	16.1%	2,858	2,473	15.6%
Gross Margin	43.6%	44.1%		46.0%		46.3%	47.5%
EBITDA	408	258	58.3%	308	32.5%	1,227	1,052	16.6%
EBITDA Margin	21.9%	18.0%		20.2%		19.9%	20.2%
PAT	272	213	27.6%	223	21.9%	833	719	15.8%
PAT Margin	14.6%	14.8%		14.6%		13.5%	13.8%

Commenting on results, Mr. Naresh Patel, Executive Chairman & Managing Director, Ami Organics Limited, said: “The financial year 2023 has been very challenging on all fronts and I am happy that we have been able to deliver robust growth despite these challenges. Our full year total revenue grew by 19% YoY to Rs. 621cr. This was driven by Advance Pharmaceutical Intermediates business which grew strongly by 22% YoY.

We have used this challenging year to create various growth drivers for the coming years. One of the first initiatives was our electrolyte additives which have been approved by six clients and some of them have released plant scale trial orders. We are also expecting commercial orders from a few customers during the current quarter. Next initiative was to enter into long term exclusive contracts with customers and we have been able to sign some these contracts with some of our big customers. Third initiative was to expand product base for our specialty division with focus on products having high entry barriers. We have developed exciting product pipeline here and products are at different stages of validation and approvals. Some of these products are very big and I will update you on these once they reach certain milestones.

I am also pleased to share the acquisition of 55% stake in Baba Fine Chemicals (BFC), a leading speciality chemicals company supplying products to the semiconductor industry. BFC has very niche products with high entry barriers, and we are excited to work with them and help them ramp-up their products at higher volumes.

Overall, I remain confident of continuing the strong growth momentum in FY24.”

Key Results Highlights (Q4 FY23 Consolidated):

ü  Revenue from operations for Q4FY23 grew by 29.8% YoY to Rs. 1,864 mn; Sequentially    revenue grew by 22.3

ü  The Gross margin for the quarter was at 43.6% as compared to 44.1% in Q4FY22 and 46% in Q3FY23. Lower gross margin was due to remaining high-cost inventory which has been completely consumed in Q4 FY23.

ü  EBITDA for the quarter came at Rs. 408 mn up 58.3% YoY compared to Rs. 258 mn in Q4FY22 and up 32.6% on a sequential basis. EBITDA margin for the quarter was at 21.9% as compared to 18% in Q4FY22 and 20.2% in Q3FY23. EBITDA margins improvement continues as per the guidance with EBITDA margin expanding by 380 bps from Q1FY23 to Q4FY23

ü  PBT for the quarter was at Rs. 366 mn up 64.5% on YoY basis; Sequentially PBT grew by

23.9%.

ü  PAT for the quarter was at Rs. 272 mn up 27.6% on YoY basis; Sequentially PAT grew by 21.9%. PAT margin for the quarter was at 14.6% as compared to 14.8% in Q4FY22 and 14.6% in Q3FY23.

Key Results Highlights (FY23 Consolidated):

ü  Revenue from operations for FY23 grew by 18.6% YoY to Rs. 6,167 mn.

ü  Gross margin for the year were at 46.3% as compared to 47.5% in FY22.

ü  EBITDA for the year came at Rs. 1,227 mn up 16.6% YoY compared to Rs. 1,052 mn in FY22.

ü  EBITDA margin for the year remain flat at 19.9% as compared to 20.2% in FY22. Adjusted EBITDA margin is at 20.5% adjusting for the impact of one-off items like loss on insurance claim receivable and loss on sale of assets.

ü  PAT for the year was at Rs.833 mn up 15.8% on YoY basis. PAT margin for the year was at 13.5%

ü  Cash Flow from Operations at Rs. 655 mn as compared to Rs. -119 mn in FY22.

Key Business highlights:

ü  Export at 59%; domestic business at 41% (FY23)

ü  Advance Pharmaceutical Intermediates:

o   Expanded scope of Fermion contract to add more advance intermediates for the same API resulting in multi fold increase in contract value.

o   Added ~40 New Customers during the year

ü  Specialty Chemicals: Added ~20 new customers during the year

ü  Electrolyte additives update:

o   Electrolyte samples approved at plant trial scale by 6 customers.

o   Received commercial trial order from more customers.

o   Expecting to receive a commercial order during Q1FY24.

o   Developed two new products: One Liquid electrolyte additive to increase electrocapacity of Li batteries and one for Solid battery.

ü  Baba Fine Chemicals: Board of Directors have approved acquisition of 55% stake in Baba Fine Chemicals through mix of equity and cash consideration.

ü  Solar Energy: Started planning to set up 4.5 MW solar power plant in Gujarat.

ABOUT AMI ORGANICS LIMITED:

Ami Organics, headquartered at Surat, is a R&D driven manufacturer of specialty chemicals with varied end usage, focussed on the development and manufacturing of advanced pharmaceutical intermediates (“Pharma Intermediates”) for regulated markets and generic active pharmaceutical ingredients (“APIs”) and New Chemical Entities (“NCE”) and key starting material for agrochemical and fine chemicals. AMI has developed and commercialised over 450 Pharma Intermediates for APIs across 17 key therapeutic areas since inception and NCE, with a strong focus on R&D across select high-growth high margin chronic therapeutic areas.

CAUTIONARY STATEMENT:

This press release contains certain forward-looking statements. Any forward-looking statement applies only on the date of this press release. By their nature, forward-looking statements are subject to a number of known and unknown risks and uncertainties that may or may not occur in the future and as a result of which the actual results and performance may differ substantially from the expected future results or performance expressed or implied in the forward-looking statements. No warranties or representations are made as to the accuracy, achievement, or reasonableness of such statements, estimates or projections, and Ami Organics has no obligation to update any such information or to correct any inaccuracies herein or omission here from which may become apparent.