Here's why Aarti Drugs shares fell 4% on October 25, more details here

Aarti Drugs share price: Pharmaceutical company Aarti Drugs shares dropped up to 3.67 per cent to hit an intraday low of Rs 467 per share on Friday, October 24, 2024. 

 

The fall in Aarti Drugs share price came after the company reported a weak set of September quarter (Q2FY25) earnings.

 

Aarti Drugs’ profit dropped 11.6 per cent annually to Rs 35 crore in the September quarter of FY25, from Rs 39.6 crore in the September quarter of FY24. 

 

The company’s revenue fell 6.7 per cent Y-o-Y to Rs 598.3 crore in Q2FY25, from Rs 641.5 crore in Q2FY24. 

 

 

At the operating level, earnings before interest, tax, depreciation and amortisation (Ebitda) dropped 12.3 per cent annually to Rs 67 crore in the September quarter of financial year 2025 (Q2FY25), from Rs 76.4 crore in the September quarter of financial year 2024 (Q2FY24).

 

Consequently, Ebitda margin dropped 70 basis points (bps) to 11.2 per cent in Q2FY25, from 11.9 per cent in Q2FY24.

 

Adhish Patil, CFO & COO, of Aarti Drugs Limited said, “During Q2FY25, we have seen a drop in revenues and profitability on a year-on-year basis mainly due to lower realisations stemming from negative rate variance and subdued market demand in the API business. The volumes have remained flattish on a Y-o-Y basis whereas we have seen a growth of 10 per cent from the last quarter. Since Q1, the prices have stabilised, and volumes have grown which has led to a growth of 8 per cent in revenues on a Q-o-Q basis. We expect pricing to improve going ahead.”

 

Aarti Drugs Limited, established in 1984, is part of the $6 billion Aarti Group of Industries. The company boasts a strong R&D division located in Tarapur, Maharashtra, near its manufacturing sites. 

 

Aarti Drugs specialises in the production of Active Pharmaceutical Ingredients (APIs), pharmaceutical intermediates, specialty chemicals, and formulations through its wholly-owned subsidiary, Pinnacle Life Science Private Limited.

 

With a total of 12 manufacturing facilities—nine in Maharashtra, two in Gujarat, and one in Himachal Pradesh (operated by Pinnacle)—the company offers a diverse range of products. Its API portfolio includes Ciprofloxacin Hydrochloride, Metronidazole, Metformin HCL, Ketoconazole, and Ofloxacin. In the specialty chemicals segment, it produces Benzene Sulphonyl Chloride and Methyl Nicotinate, among others.

 

At 1:00 PM, Aarti Drugs shares were trading 1.86 per cent lower at Rs 475.80 per share. In comparison, BSE Sensex was trading 0.90 per cent lower at 79,346.13 levels.