Amal Ltd Earnings Summary — Q4 FY2024

• Amal Ltd remains strategically aligned with parent company Atul Ltd, acting as a critical supplier of Sulphuric acid derivatives.
• The company has transitioned into a loss-making period, with EPS falling from ₹2.69 in FY22 to -₹4.84 in FY24.
• Debt levels have increased significantly, rising from ₹11.23 Cr in FY21 to over ₹87 Cr by FY24 to fund capital expenditures.
• Operating margins turned negative (-15% in FY24) due to volatile raw material costs, specifically molten sulphur and energy.
• Despite financial volatility, governance scores remain high (88) due to the professional oversight of the Lalbhai Group.
• Negative Free Cash Flow persists (₹-0.91 Cr in FY24) as the company balances recent capacity expansions with operating losses.

Management remains focused on operational excellence, safety, and regulatory compliance, treating the unit as a stable support facility for the Atul ecosystem rather than an aggressive growth vehicle.

Deteriorating

The company has moved from a period of rehabilitation and profitability into significant net losses and increased debt leverage over the last two fiscal years.

The outlook remains challenging as the company must service higher debt while navigating narrow margins in the commoditized bulk chemicals market. Recovery is dependent on the stabilization of raw material inputs and increased capacity utilization following recent capex.