Financial Results Sustained revenue growth driven by volume expansion and 74% contribution from value-added products Gross margins returned to normalized levels Domestic demand for discretionary products has returned to pre-covid levels, while for exports markets the same are recovering gradually Pharma segment revenues at record levels Finance charges lower based on lower cost of funds. Capex in Q2FY22: Rs 317 crore; 6M aggregate capex of Rs. 620 crore – in line with guidance of Rs. 1,200-1,500 crs for FY22. Re-iterated guidance of over 25% growth for FY22. Strong momentum in H1, driven by rising demand across various products. Higher contribution from domestic demand as the local manufacturing ecosystem continues to progress. Commenting on the performance for Q2 FY22, Mr. Rajendra Gogri – Chairman & MD at Aarti Industries Limited said: “Maintaining our growth trajectory, we have once again recorded the highest ever revenue and profitability in our operating history. We evaluate EBITDA as the key monitorable for the business and on this parameter we have delivered 22% growth on YoY basis. Based on the milestones achieved in the first half of FY22, we remain well-positioned to meet our growth guidance. We are further encouraged by our recent achievements that come in the backdrop of a highly volatile operating environment during this entire period – marked by significant shifts in raw material prices, coal availability, supply chain disruptions, competitive pressures as well as constantly changing dynamics in our end-user markets. We are seeing improving demand shifts across key customer segments both in international markets and within the expanding Indian chemicals ecosystem. We believe the current visibility – for India as an increasingly significant global chemicals supply destination and for players such as Aarti that are recognized as partners of choice by leading innovator companies – is likely to remain robust over the long term. On the operational front, we are witnessing progressively higher utilization of recently commissioned facilities and we remain in line for the launch of our second and third long?term customer contracts, NCB expansion and pharma capacity enhancement for both APIs and intermediates. These enhancements provide us the confidence of meeting our growth guidance for FY24. We are also aggressively pursuing the previously shared business plan and revenue targets for the rest of the current decade, supported by a well-capitalized balance sheet.” Result PDF
Conference Call with Aarti Industries Management and Analysts on Q2FY22 Performance and Outlook. Listen to the full earnings transcript.