Shares of Balaji Amines hit a 52-week low of Rs 2,161.35, down 6% on the BSE in intraday trade on Tuesday, after the company reported poor operating performance for the December quarter. The consolidated Ebitda fell 582 basis points to 22.14%, attributing the decline in operating margin to slower growth in the pharmaceutical and API sectors.

In Q3FY23, the company’s revenue from operations rose 3.48% to Rs 588 crore from Rs 569 crore in Q3FY22. Total volumes in Q3FY23 increased by 2.02% to 28,147 tonnes compared to 27,589 tonnes in Q3FY22. Profit after tax fell 17.5% to Rs 837.9 crore from Rs 1,015.9 crore a year earlier.

Balaji Amines is India’s leading manufacturer of fatty amines and speciality chemicals, specialising in producing methylamines, ethylamine, amine derivatives and other speciality chemicals.

The stock has fallen 30% over the past three months, compared with a 1% drop in the S&P BSE Sensex. It has corrected 44% from its 52-week high of Rs 3,842 on September 15, 2022.

However, management said that revenue from newly opened factories would contribute to the company’s top line from the next few quarters, which could improve the company’s margins from Q1FY24.

“Dimethyl carbonate (DMC) is used in pharmaceuticals as well as in the production of polycarbonate and lithium batteries, consumption in India is set to grow exponentially on the back of various government initiatives, and the electric vehicle (EV) industry is poised to be a rising sun for years to come industry,” management said.