DIAMINESQ - Diamines & Chem.

📊 NSE: DIAMINESQ 🏢 Chemicals 📅 Last Updated: 12/13/2025 21:32

💰 Financial Performance

Revenue Growth by Segment

Total standalone revenue declined by 29.61% YoY, falling from INR 10,676.05 lakhs in FY 2023-24 to INR 7,514.57 lakhs in FY 2024-25. The company operates in two primary segments: Specialty Chemicals and Trading in Fruits and Vegetables, though specific revenue splits per segment were not provided.

Geographic Revenue Split

Not disclosed in available documents, though the primary manufacturing operations are concentrated in Vadodara, Gujarat.

Profitability Margins

Profitability saw a sharp decline; Operating Profit Margin dropped from 23.33% to 9.32% (a 60% reduction), and Net Profit Margin fell from 17.08% to 6.29% (a 63% reduction). This was primarily driven by a reduction in sales prices and a simultaneous increase in material costs.

EBITDA Margin

Operating profit after tax for FY 2024-25 was INR 448.73 lakhs, representing a 9.32% margin, down significantly from INR 1,777.13 lakhs (23.33% margin) in the previous year due to global demand-supply imbalances in the ethylene amines market.

Capital Expenditure

The company provided an outstanding loan of INR 567.51 lakhs to its wholly-owned subsidiary, DACL Fine Chem Limited, specifically for Dahej site-related activities and statutory requirements.

Credit Rating & Borrowing

CRISIL migrated the company's ratings to 'CRISIL BB+/Stable/CRISIL A4+ Issuer not cooperating' due to inadequate information and lack of management cooperation. The company also failed to pay rating surveillance fees. Internal borrowing costs for the subsidiary are set at 11.65% p.a.

⚙️ Operational Drivers

Raw Materials

Specific raw material names were not listed, but 'material cost' is cited as a primary driver for the 60% decline in operating margins.

Import Sources

The company utilizes authorization licenses for the import of materials and services, indicating a reliance on international sourcing, though specific countries were not named.

Capacity Expansion

While specific MTPA figures were not provided, the company is investing in its Dahej site through its subsidiary, DACL Fine Chem Limited, supported by an INR 567.51 lakh loan.

Raw Material Costs

Raw material costs increased significantly in FY 2024-25, which, combined with falling sales prices, led to a 74.75% drop in standalone operating profit after tax.

Manufacturing Efficiency

Inventory Turnover Ratio worsened by 48%, falling from 2.83 times to 1.47 times, indicating slower movement of stock and potential inefficiencies in production planning or market demand.

📈 Strategic Growth

Growth Strategy

Growth will be pursued by maintaining market leadership in specific ethylene amines segments, leveraging the Indian growth market, and utilizing the proceeds from 9,16,390 warrants approved for allotment in September 2024 to strengthen the balance sheet.

Products & Services

The company manufactures ethylene amines and piperazine products and engages in the trading of fruits and vegetables.

Brand Portfolio

DIAMINESQ (DACL).

Market Expansion

The company is focusing on sustaining market share in segments where it holds a leadership position and is expanding its footprint through its Dahej site activities.

Market Share & Ranking

The company identifies as a key manufacturer of ethylene amines in India, which is considered a growth market.

Strategic Alliances

The company maintains a strategic relationship with KLJ Organic Diamines Limited (Associate/Joint Venture) and has provided it with a loan of INR 256.41 lakhs at 8% interest for business purchase.

🌍 External Factors

Industry Trends

The ethylene amines industry is currently characterized by a global demand-supply imbalance. While the Indian market is growing, the company must navigate a challenging scenario of high material costs and low finished goods pricing.

Competitive Landscape

The company faces competition from global ethylene amine producers, which influences domestic pricing and margin stability.

Competitive Moat

The company's moat is built on being a key domestic manufacturer in a growth market (India) with established customer relationships, though this is currently challenged by global price volatility.

Macro Economic Sensitivity

Highly sensitive to global chemical pricing cycles and demand-supply dynamics in the specialty chemicals sector.

Geopolitical Risks

Global supply chain imbalances in the ethylene amines market represent a significant geopolitical and economic risk to stable operations.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Manufacture, Storage and Import of Hazardous Chemicals Rules (1989) and Hazardous Wastes Rules (1989/2003).

Environmental Compliance

The company complies with major environmental regulations including the Air Act (1981), Water Act (1974), and Environment Protection Act (1986).

Legal Contingencies

The Secretarial Audit report indicates general compliance with applicable laws, with no specific major legal disputes or case values mentioned in the provided text.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the duration of the global demand-supply imbalance in ethylene amines, which caused a 74.75% drop in standalone operating profit.