Aarti Industries reported 39% rise in consolidated net profit to Rs 194 crore on a 49.8% increase in gross income from operations to Rs 2,018 crore in Q4 FY22 over Q4 FY21.
Consolidated EBITDA jumped 30% YoY to Rs 339 crore during the period under review. EBITDA margin in Q4 FY22 was 16.8% as against 19.3% in Q4 FY21. Profit before tax in the fourth quarter stood at Rs 231 crore, up 34% from Rs 173 crore reported in the same period last year.
Revenue from the speciality chemicals division increased 49% YoY to Rs 1,629 crore while the revenue from pharma division jumped 52% YoY to Rs 388 crore in Q4 FY22.
The company's consolidated net profit surged to Rs 1,307 crore in FY22 from Rs 535 crore in FY21. Gross incomes from operations rose by 57.7% to Rs 7,919 crore in FY22 over FY21.
Rajendra Gogri, chairman & MD, Aarti Industries, said: We scaled new peaks during FY22 inspite of unprecedented pressures linked to inflation in input prices, in addition to elevated utility costs, disruptions in global supply chains and other challenges arising especially due to resurgent 2nd COVID wave. Moreover, it tested our ability to pass on these cost pressures. Given our long-standing relationship with our customers and time-tested business model, we have pass-through mechanisms in place which protected our margins.
We have made healthy progress on some of our growth initiatives and have aggressive CAPEX plans lined up to realise our ambitions. Our investment across diversifying the product-mix, capacity enhancements in both speciality chemicals and pharmaceuticals, adding newer chemistries and range of products as well as strengthening our EHS standards will start contributing from the current fiscal year. This is based on healthy demand scenario prevalent in the domestic and export markets where India is seen as a reliable supplier.
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The counter witnessed steep selling today. The scrip tumbled 6.16% to Rs 761.90 on the BSE. Till now, over 1.09 lakh shares of the company changed hands in the counter as against an average trading volume of 0.49 lakh shares in the past two weeks.
A domestic brokerage reportedly noted that sequentially, the company's consolidated operating profit has fallen by 4% likely because the company ceased to account for compensatory receipts from Bayer AG since December.
The media reported that the investors were disappointed by the management's guidance that consolidated operating profit will grow at high single digit in 2022-23, suggesting a year of consolidation ahead for the company.
The slowdown in operating profit growth would be because of lack of receipts from Bayer and new projects at lower margins. Given the growth guidance, heavy capital expenditure and risk of global economic slowdown, the company's valuations are "still rich", the brokerage reportedly said.
Aarti Industries is a manufacturer of specialty chemicals and pharmaceuticals.
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