|
Aarti
Industries consolidated net sales increased 100.20% to Rs 2375.98 crore in
Q3FY22 compared to Q3FY21. Sales of
Speciality Chemicals segment has gone up 115.23% to Rs 2,288.34 crore
(accounting for 86.81% of total sales).
Sales of Pharmaceuticals segment has gone up 40.37% to Rs 347.82 crore
(accounting for 13.19% of total sales).
Inter-segment sales rose Rs 124.20 crore to Rs 260.18 crore.
Operating
profit margin has jumped from 24.01% to 40.66%, leading to 239.05% rise in
operating profit to Rs 966.12 crore. Raw material cost as a % of total sales
(net of stock adjustments) decreased from 39.88% to 36.75%. Purchase of
finished goods cost fell from 5.48% to 3.35%. Employee cost decreased from
7.71% to 5.16%. Other expenses fell from
22.68% to 14.44%.
Other
income fell 86.05% to Rs 0.06 crore.
PBIDT rose 238.56% to Rs 966.18 crore. Profit before interest, tax and
other unallocable items (PBIT) has jumped 242.13% to Rs 953.87 crore. PBIT of Speciality Chemicals segment rose
298.84% to Rs 893.85 crore (accounting for 93.71% of total PBIT). PBIT of Pharmaceuticals segment rose 9.75% to
Rs 60.02 crore (accounting for 6.29% of total PBIT).
PBIT
margin of Speciality Chemicals segment rose from 21.08% to 39.06%. PBIT margin of Pharmaceuticals segment fell
from 22.07% to 17.26%. Overall PBIT
margin rose from 21.27% to 36.18%.
Provision
for interest rose 55.67% to Rs 26.9 crore. PBDT rose 250.35% to Rs 939.28
crore. Provision for depreciation rose 22.13% to Rs 71.64 crore. Profit before tax grew 314.27% to Rs 867.64
crore. Provision for tax was expense of Rs 95.1 crore, compared to Rs 40.26
crore. Effective tax rate was 10.96% compared to 19.22%.
Minority
interest decreased 98.72% to Rs 0.05 crore. Net profit attributable to owners
of the company increased 367.41% to Rs 772.49 crore.
Promoters’
stake was 44.21% as of 31 December 2021 compared to 47.34% as of 31 December
2020.
For year-to-date (YTD)
results analysis
Net
sales of Aarti Industries have increased 59.08% to Rs 5244.32 crore. Sales of Speciality Chemicals segment has
gone up 67.82% to Rs 4,990.03 crore (accounting for 84.56% of total
sales). Sales of Pharmaceuticals segment
has gone up 29.63% to Rs 911.46 crore (accounting for 15.44% of total
sales). Inter-segment sales rose Rs
379.73 crore to Rs 657.17 crore.
Operating
profit margin has jumped from 21.88% to 30.31%, leading to 120.42% rise in
operating profit to Rs 1,589.70 crore.
Raw material cost as a % of total sales (net of stock adjustments)
increased from 41.90% to 43.57%.
Purchase of finished goods cost fell from 5.84% to 3.53%. Employee cost decreased from 8.28% to
5.93%. Other expenses fell from 22.15%
to 17.69%.
Other
income fell 8.70% to Rs 0.63 crore.
PBIDT rose 120.29% to Rs 1590.33 crore.
Profit before interest, tax and other unallocable items (PBIT) has
jumped 117.36% to Rs 1,521.90 crore.
PBIT of Speciality Chemicals segment rose 153.19% to Rs 1,368.33 crore
(accounting for 89.91% of total PBIT).
PBIT of Pharmaceuticals segment fell 3.86% to Rs 153.57 crore
(accounting for 10.09% of total PBIT).
PBIT
margin of Speciality Chemicals segment rose from 18.18% to 27.42%. PBIT margin of Pharmaceuticals segment fell
from 22.72% to 16.85%. Overall PBIT
margin rose from 19.04% to 25.79%.
Provision
for interest rose 29.22% to Rs 83.67 crore.
PBDT rose 129.26% to Rs 1506.66 crore.
Provision for depreciation rose 27.54% to Rs 211.29 crore.
Profit
before tax grew 163.55% to Rs 1,295.37 crore.
Provision for tax was expense of Rs 181.7 crore, compared to Rs 95.62
crore. Effective tax rate was 14.03%
compared to 19.45%.
Minority
interest decreased 97.53% to Rs 0.21 crore.
Net profit attributable to owners of the company increased 187.44% to Rs
1,113.46 crore.
Promoters’
stake was 44.21% as of 31 December 2021 compared to 47.34% as of 31 December
2020.
Commenting on the
performance for Q3 FY22, Mr. Rajendra Gogri – Chairman & MD at Aarti
Industries Limited said:
“During
Q3, our core EBITDA of Rs. 356 crore is once again the highest in our operating
history, demonstrating the ability of the business to maintain margins by
passing on to customers the substantial input cost inflation experienced during
the reported period. Our current operating trajectory also suggests resumption
of growth momentum in FY22 following a period of slower expansion in the
previous two years due to the impact of a tough macro environment.
We
remain focused on addressing the large opportunity arising from import
substitution and supply chain diversification by global majors. Our established
position as a partner of choice across an ever-increasing number of engagements
is driving scale. We are also investing in product diversification, capacity expansion/upgradation
in both speciality chemicals and pharmaceuticals as well as building out
internal capabilities on quality, safety, health and environment and an
expanded R&D pipeline.
We
believe this augmented organizational framework positions us strongly to
capture strategic growth opportunities. This will be supported by the expanded
pipeline of operationalized projects that are currently underway, providing
clear visibility to the business over the next several years.
As
India emerges as an increasingly significant global chemicals supply
destination, backed by a supportive regulatory framework instituted by the
government, our capex commitments driven by a wellcapitalized balance sheet,
will allow the pursuit of aggressive growth in line with our business
blueprint.
Our
plan to create individually focused businesses in our two core verticals will
further enhance value for all our stakeholders.”
Full year results
analysis
Net
sales (including other operating income) of Aarti Industries has increased
7.64% to Rs 4506.1 crore. Sales of
Speciality Chemicals segment has gone up 7.41% to Rs 4,151.40 crore (accounting
for 82.64% of total sales). Sales of Pharmaceuticals
segment has gone up 15.37% to Rs 871.88 crore (accounting for 17.36% of total
sales).
Operating
profit margin has slumped from 23.35% to 21.78%, leading to 0.43% rise in
operating profit to Rs 981.53 crore. Raw
material cost as a % of total sales (net of stock adjustments) decreased from
42.55% to 42.50%. Purchase of finished
goods cost fell from 6.56% to 5.36%.
Employee cost increased from 7.29% to 8.15%. Other expenses rose from 20.25% to
22.47%.
Other
income fell 92.08% to Rs 0.7 crore.
Profit before interest, tax and other unallocable items (PBIT) has
jumped 0.61% to Rs 957.33 crore. PBIT of
Speciality Chemicals segment fell 7.54% to Rs 752.75 crore (accounting for
78.63% of total PBIT). PBIT of
Pharmaceuticals segment rose 48.83% to Rs 204.58 crore (accounting for 21.37%
of total PBIT).
PBIT
margin of Speciality Chemicals segment fell from 21.06% to 18.13%. PBIT margin of Pharmaceuticals segment rose
from 18.19% to 23.46%. Overall PBIT
margin fell from 20.59% to 19.06%.
Provision
for interest fell 30.78% to Rs 86.37 crore.
Loan funds rose to Rs 2,492.12 crore as of 31 March 2021 from Rs
1,810.51 crore as of 31 March 2020.
Inventories rose to Rs 935.68 crore as of 31 March 2021 from Rs 835.68
crore as of 31 March 2020. Sundry
debtors were higher at Rs 793.73 crore as of 31 March 2021 compared to Rs
753.44 crore as of 31 March 2020. Cash
and bank balance rose to Rs 412.32 crore as of 31 March 2021 from Rs 247.29
crore as of 31 March 2020. Investments
rose to Rs 63.52 crore as of 31 March 2021 from Rs 37.01 crore as of 31 March
2020 .
Provision
for depreciation rose 24.89% to Rs 231.31 crore. Fixed assets increased to Rs 4,890.39 crore
as of 31 March 2021 from Rs 3,885.21 crore as of 31 March 2020. Intangible assets declined from Rs 0.92 crore
to Rs 0.10 crore.
Profit
before tax shrink 1.72% to Rs 664.55 crore.
Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 129.33
crore, compared to Rs 129.42 crore.
Effective tax rate was 19.46% compared to 19.14%.
Minority
interest increased 10.02% to Rs 11.75 crore.
Net profit attributable to owners of the company decreased 2.35% to Rs
523.47 crore.
Equity
capital stood at Rs 87.12 crore as of 31 March 2021 to Rs 87.12 crore as of 31
March 2020. Per share face Value
remained same at Rs 5.00.
Promoters’
stake was 46.82% as of 31 March 2021 compared to 47.75% as of 31 March 2020
.
Cash
flow from operating activities decreased to Rs 872.71 crore for year ended
March 2021 from Rs 1,102.06 crore for year ended March 2020. Cash flow used in acquiring fixed assets
during the year ended March 2021 stood at Rs 1,314.82 crore, compared to Rs
1,153.29 crore during the year ended March 2020.
The
scrip trades at Rs 991
|
Aarti Industries : Consolidated Results
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Particulars
|
2112 (03)
|
2012 (03)
|
Var.(%)
|
2112 (09)
|
2012 (09)
|
Var.(%)
|
2103 (12)
|
2003 (12)
|
Var.(%)
|
|
Net Sales
|
2,375.98
|
1,186.78
|
100
|
5,244.32
|
3,296.75
|
59
|
4,506.10
|
4,186.31
|
8
|
|
OPM (%)
|
40.7
|
24.0
|
|
30.3
|
21.9
|
|
21.8
|
23.4
|
|
|
OP
|
966.12
|
284.95
|
239
|
1,589.70
|
721.23
|
120
|
981.53
|
977.33
|
0
|
|
Other Inc.
|
0.06
|
0.43
|
-86
|
0.63
|
0.69
|
-9
|
0.7
|
8.84
|
-92
|
|
PBIDT
|
966.18
|
285.38
|
239
|
1,590.33
|
721.92
|
120
|
982.23
|
986.17
|
0
|
|
Interest
|
26.9
|
17.28
|
56
|
83.67
|
64.75
|
29
|
86.37
|
124.78
|
-31
|
|
PBDT
|
939.28
|
268.1
|
250
|
1,506.66
|
657.17
|
129
|
895.86
|
861.39
|
4
|
|
Depreciation
|
71.64
|
58.66
|
22
|
211.29
|
165.67
|
28
|
231.31
|
185.21
|
25
|
|
PBT
|
867.64
|
209.44
|
314
|
1295.37
|
491.5
|
164
|
664.55
|
676.18
|
-2
|
|
Taxation
|
95.1
|
40.26
|
136
|
181.7
|
95.62
|
90
|
129.33
|
129.42
|
0
|
|
PAT
|
772.54
|
169.18
|
357
|
1113.67
|
395.88
|
181
|
535.22
|
546.76
|
-2
|
|
Minority Interest (MI)
|
0.05
|
3.91
|
-99
|
0.21
|
8.51
|
-98
|
11.75
|
10.68
|
10
|
|
Net profit
|
772.49
|
165.27
|
367
|
1113.46
|
387.37
|
187
|
523.47
|
536.08
|
-2
|
|
EPS (Rs)*
|
#
|
#
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|
#
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#
|
|
14.4
|
14.8
|
|
|
Notes
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* EPS is on current equity of Rs 181.25 crore, Face value of Rs
5, Excluding extraordinary items.
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# EPS is not annualised
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|
bps : Basis points
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|
EO : Extraordinary items
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Figures in Rs crore
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Source: Capitaline Corporate Database
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Aarti Industries : Consolidated Segment Results
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|
|
% of (Total)
|
2112 (03)
|
2012 (03)
|
Var.(%)
|
% of (Total)
|
2112 (09)
|
2012 (09)
|
Var.(%)
|
% of (Total)
|
2103 (12)
|
2003 (12)
|
Var.(%)
|
|
Sales
|
|
|
|
|
|
Speciality Chemicals
|
87
|
2,288.34
|
1,063.19
|
115
|
85
|
4,990.03
|
2,973.37
|
68
|
81
|
4,070.98
|
3,864.95
|
5
|
|
Pharmaceuticals
|
13
|
347.82
|
247.79
|
40
|
15
|
911.46
|
703.11
|
30
|
19
|
952.3
|
755.74
|
26
|
|
Total Reported Sales
|
100
|
2,636.16
|
1,310.98
|
101
|
100
|
5,901.49
|
3,676.48
|
61
|
100
|
5,023.28
|
4,620.69
|
9
|
|
Less: Inter segment revenues
|
|
260.18
|
124.2
|
109
|
|
657.17
|
379.73
|
73
|
|
517.18
|
0
|
-
|
|
Net Sales
|
|
2,375.98
|
1,186.78
|
100
|
|
5,244.32
|
3,296.75
|
59
|
|
4,506.10
|
4,620.69
|
-2
|
|
PBIT
|
|
|
|
|
|
Speciality Chemicals
|
94
|
893.85
|
224.11
|
299
|
90
|
1,368.33
|
540.44
|
153
|
78
|
746.37
|
814.11
|
-8.32
|
|
Pharmaceuticals
|
6
|
60.02
|
54.69
|
10
|
10
|
153.57
|
159.74
|
-4
|
22
|
210.96
|
137.46
|
53.47
|
|
Total PBIT
|
100
|
953.87
|
278.8
|
242
|
100
|
1,521.90
|
700.18
|
117
|
100
|
957.33
|
951.57
|
0.61
|
|
Less : Interest
|
|
26.9
|
17.28
|
56
|
|
83.67
|
64.75
|
29
|
|
86.37
|
124.78
|
-30.78
|
|
Add: Other un-allcoable
|
|
-59.33
|
-52.08
|
-14
|
|
-142.86
|
-143.93
|
1
|
|
-206.41
|
-150.61
|
-37.05
|
|
PBT
|
|
867.64
|
209.44
|
314
|
|
1,295.37
|
491.5
|
164
|
|
664.55
|
676.18
|
-1.72
|
|