Dear Shareholders,
I am honoured to present our Annual Report for the Financial Year 2024.
Embracing Innovation and Driving Expansion:
At Ami Organics, we firmly believe that innovation is the cornerstone
of sustainable growth. By embedding this value into every facet of our business, we have
achieved a robust revenue growth of 16.3% YoY in FY24. Our commitment to innovation
extends to even the smallest aspects of our operations. A prime example is the significant
advancements we?ve made in flow chemistry through our in-house R&D. We now
operate key chemistries within a flow reactor, a move that has expanded our capacities,
improved yields, and reduced operating costs. Notably, these reactors were designed by our
own team, a source of immense pride for all of us.
Automation is another area where we are making strides. While major
changes to existing facilities may not always be feasible, we?ve focused on
automating smaller processes, collectively enhancing our overall efficiency. Our new
Ankleshwar plant stands as a state-of-the-art facility, featuring a Distributed Control
System (DCS) and a Powder Transfer System (PTS). These innovations make it one of the most
automated intermediates plant in the industry, enhancing safety, quality, as well as
ensuring greater transparency and compliance through computer-generated data rather than
manual entries. This strategic focus on technology, efficiency, safety and compliance will
not only garner recognition from regulators but also position us as a preferred partner
for CMO and CDMO opportunities in advanced pharmaceutical intermediates with innovators.
It?s essential to understand that we are not merely expanding our
capabilities; we are building a robust, industry-leading infrastructure. This is designed
to deliver high-value intermediates and chemicals with unparalleled purity, supported by
automated operational data and virtual digital supervision that enables clients to monitor
their products? progress at our facilities.
When we speak of "propelling expansion", we are not just
increasing production capacities but also broadening the applications of the chemicals we
manufacture. In line with our strategy to venture into niche applications with low
competition and high entry barriers, we acquired a 55% stake in Baba Fine Chemicals (BFC)
in FY24. BFC, specializing in super specialty chemicals for the semiconductor industry, is
a strategic move to enter a high-entry-barrier industry and help BFC scale operations and
market its products globally.
Building on our momentum in the battery space, where we?ve already
developed electrolyte additives for lithium-ion batteries, we entered into a strategic
Memorandum of Understanding (MoU) with a global manufacturer to produce electrolytes for
battery cell and allied materials. This venture marks a significant step in expanding our
presence in this high-growth segment.
Delivering Consistent Performance:
In FY2024, our consolidated revenue from operations reached 7175
million, reflecting a 16.3% increase from 6167 million in FY2023. Our EBITDA for the year
was 1285 million, up 4.8% from 1227 million in the previous year, resulting in an EBITDA
margin of 17.9%. Adjusted PAT was 808 million, with margins of 11.3%, excluding the
one-time full impairment of our investment the joint venture, Ami Oncotheranositics LLC.
Exports contributed 56% of our revenue, while the domestic market
accounted for 44%. Despite challenges throughout the year, we maintained strong cash
generation from operations, amounting to 1252 million.
Shaping a Greener Tomorrow:
As we pursue operational excellence, we remain committed to building a
sustainable future for generations to come. Our relentless efforts in environmental
stewardship have earned us a ‘Gold Medal? accreditation from EcoVadis.
Our focus on green chemistry and eco-friendly initiatives continues to guide our
responsible growth strategy. To further our sustainability agenda, the Board of Directors
has approved capital expenditure for a 16MW captive solar power plant, expected to meet
most of our energy needs once operational.
Driving Progress:
Our commitment to sustainable growth, underpinned by innovation,
cutting-edge technology, and infrastructure, has created multiple moats around our
business model, ensuring continued growth. For instance, our expanded partnership with a
leading pharmaceutical innovator customer has resulted in a significant CDMO contract,
which is expected to be a key growth driver in the coming years. In the specialty
chemicals sector, our focus on operational improvement and global competitiveness has
helped increase our volumes. This will grow steadily in the coming years, supported by our
semiconductor and battery chemicals businesses, which, though currently small, hold
immense potential.
I am confident that we have multiple growth engines poised to drive our
progress in the coming years, delivering sustainable & quality growth.
Finally, I would like to extend my heartfelt gratitude to our
shareholders, employees, Board of Directors, and all other stakeholders. Thank you for
your continued trust and support. Together, let us build a sustainable enterprise driven
by innovation, quality, and technology.
Warm regards,
Nareshkumar Patel
Executive Chairman & Managing Director