- 01 Nov 2021
- ICICIdirect Research
Aarti industries reports mixed set of numbersAARTIIND - 512 Change: -0.50 (-0.10 %)
News: Aarti Industries’ revenues grew at 32.3% YoY to Rs.1551.6 crore (I-direct estimate: Rs.1440.2 crore) amid 36% growth in Speciality chemicals to Rs.1483.5 crore (I-direct estimate: Rs.1389.4 crore). The pharma business recorded a revenue growth of 15% YoY to Rs.278.5 crore against our estimates of Rs.254.8 crore. EBITDA margins contracted by 170 bps YoY to 20% (I-direct estimate: 22.8%), leading to EBITDA growth of 21.8% YoY to Rs.309.8 crore against our estimates of Rs.327.8 crore. The subdued operational performance is on account of lower margins from pharma business. Pharma EBIT margins contracted by 940bps YoY to 14.8%. Net profit grew 23.6% YoY to 176.1 crore (I-direct estimate: Rs.178.7 crore).
Views: There has been increased in the benzene prices owing to higher crude, We believe, part of input price inflation would be passed on during this quarter due to lag impact, which should support speciality chemical growth ahead. We expect, closure of few units at China can support speciality chemical segmental volume growth ahead given that Chinese players being key peers for the company.