Profit before tax slipped 80.2% to Rs 159.89 crore in Q3 FY23 as against Rs 809.07 crore in Q3 FY22.

EBITDA (without Termination & Shortfall Fee) jumped 26.6% to Rs 289 crore in Q3 FY23 as against Rs 229 crore in Q3 FY22. EBITDA margin stood at 15.6% in Q3 FY23 as against 13.8% in Q3 FY22. EBITDA improvement was on the back of our dynamic product mix and our efforts to mitigate the global challenges to push for few high value products while the demand for few of the products remains subdued.

Q3 FY22 EBITDA is adjusted for net termination income of Rs 610 crore and shortfall fees of Rs 51 crore.

“Product off take linked to Textiles industry like Dyes and Pigments remains subdued, as directed in the previous quarter. The same is expected to start recovering over next two to three quarters,” the company stated.

The board of directors has declared interim dividend of Re 1 per equity share. The record date for the same is fixed on Wednesday 15 February 2023.

Rajendra Gogri – chairman & managing director at Aarti Industries, said, "We witnessed moderation in some input cost line items, while inflation in other costs persisted. We expect this to stabilize soon, the impact of which will be evident in the ensuing period. Our historic partnership on Nitric Acid off take will significantly benefit us in the long run and ensure that we remain adequately fueled to achieve our ambitious growth projections. On a separate note, I am pleased to share that we have commercialized the facility linked to 3rd long term contract at Jhagadia, positive contribution of which will start unfolding from next financial year."

Further he added, "Coming two years will see maximum gains arising from various CAPEX projects announced in the past. Overall, we remain confident of delivering what is expected out of us through a combination of our expertise in manufacturing and process enhancements, blended with strength in R&D and innovation."

Aarti Industries is engaged in manufacturing and dealing in speciality chemicals and pharmaceuticals.

The scrip jumped 3.79% to Rs 551.90 on the BSE.