Ami Organics Limited has reported a 17.3% year-on-year (YoY) increase in revenue to Rs. 3,260 million and a 15.2% YoY rise in H1FY24 EBITDA at Rs. 588 million for Q2 and H1 FY24, despite facing downward pricing pressures and an increase in low margin product sales. The company made the announcement on Thursday.
The robust order book of the company promises a strong second half for FY24. The Advance Pharmaceutical division witnessed approximately 8% YoY growth, even with the deferment of a product launch by a global customer. The Specialty chemicals sector saw a significant growth of 72% YoY, driven by high volume.
The relationship with Fermion was fortified as another contract for Advanced Intermediates was added, bringing it to three products under the CDMO contract. A new UV Observer product is projected to augment the portfolio starting Q3 FY24, which could further boost the company's revenue.
In an effort to enhance its sustainability measures, the board approved an investment in a 16 MW solar power plant. This comes alongside a 5 MW solar power plant that is currently under construction. Once fully functional, these plants are expected to nullify electricity costs for Ami Organics.
However, due to product launch deferment and oversupply from China, Ami Organics revised its FY24 growth target from 22-25% to 18-22%. Despite this adjustment, the company's strong performance in Q2 and H1 FY24 indicates potential for continued growth in the coming quarters.
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