Hot Pursuit
Aarti Industries declined 2% to Rs 450.40 after the company reported 62.9% decline in consolidated net profit to Rs 46 crore in Q3 FY25 as against Rs 124 crore posted in similar quarter last year.
However, revenue from operations (gross) increased 7.73% year on year (YoY) to Rs 2,035 crore in the third quarter of FY25.
Profit before tax stood at Rs 40 crore, down 65.81% from Rs 117 crore recorded in the same quarter last year.
EBITDA grew by 16.83% to Rs 236 crore in Q3 FY25, compared to Rs 202 crore in Q3 FY24, driven by volume growth, operating leverage, and improvements in product mix.
Non-Energy Business volumes jumped 14% YoY. The company said that volume uptick is visible across end applications of dyes, pigments, and polymer additives, while agrochemicals continue to remain soft.
Energy business volumes declined by 14% YoY. The company stated that a large volume bulk shipment was moved in early January.
On a nine-month basis, the company's net profit fell 17.54% to Rs 240 crore in 9M FY25, down from Rs 286 crore in 9M FY24. Revenue from operations stood at Rs 5,833 crore in 9M FY25, up 15.35% YoY.
On the outlook front, for FY25, the firm anticipates consistent volume growth over 3 years, driven by increased capacities. Operating leverages and cost optimization initiatives to drive EBITDA growth beyond volume growth.
Capex for FY25 is estimated at Rs 1,300-1,500 crore, revised from the earlier estimate of Rs 1,500-1,800 crore, with FY26 capex projected around Rs 1,000 crore.
The target EBITDA range is Rs 1,800-2,200 crore over the next 3 years, with a debt/equity ratio of less than 2.5x and ROCE exceeding 15%.
Aarti Industries is engaged in manufacturing and dealing in specialty chemicals and pharmaceuticals.
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