The company said that it has seen growth in all the business segment in Q4FY23.

Profit before tax in Q4 FY23 stood at Rs 52.16 crore, registering a growth of 48.4% year on year.

EBITDA jumped 42.3% YoY to Rs 60.2 crore in the quarter ended 31 March 2023. EBITDA margin improved to 32.7% in Q4 FY23 as compared to 28.6% recorded in the corresponding quarter previous year.

Aether Industries said that the first two quarters in FY23 were slow and low for the entire pharmaceutical industry, which also impacted the company. But the company was confident to show good growth from the third quarter of FY23, due to the increase that it anticipated in CRAMS and contract / exclusive manufacturing business models. The firm had also anticipated growth in large scale manufacturing business model, from Q4 of FY23 by commercialisation of the Site 3.

The firm has been able to show the growth in the revenues and margins in the third quarter and fourth quarter of FY23 due to the growth in all the three business models, it added.

The company stated that its CRAMS (Contract Research and Manufacturing Services) and Contract/ Exclusive Manufacturing business models continue to grow, as has been the trend in the past three quarters as well and the third business model, large scale manufacturing, has shown improvement in Q4 FY23 and is projected to grow in future as well due to demand coming back from the global pharmaceutical industry.

Further, with the launch of 5 new molecules in this business model in Aether's newly commissioned green-field manufacturing site (Site - 3) in Q4 of this fiscal year, the growth of large scale business model seems to be certain for Aether Industries.

The top line of the company comprises of 52% large scale manufacturing, 13% CRAMS, and 34% Contract / Exclusive Manufacturing business models, showing an increasing trend in revenues from the CRAMS and Contract / Exclusive Manufacturing business models.

The company's exports accounted for 69%, which include exports to special economic zone (SEZ) and export oriented units (EOU) units in India and domestic sales accounted for 31% of total sales turnover. Exports outside the geography of India accounted for 41% of the total revenue from operations for the twelve months from April 2022 to March 2023.

On full year basis, the company's consolidated net profit rose 19.7% to Rs 130.42 crore on 10.3% increase in net sales to Rs 651.07 crore in FY23 over FY22.

The company's sales mix for the twelve months from April 2022 to March 2023 comprises of Pharma 42%, Agrochemicals 35%, Multiple Applications 8%, High Performance Photography 6%, Material Science 5%, Coatings 3% and Others including Oil & Gas as 1%.

Exports outside the geography of India accounted for 41% of the total revenue from operations for the twelve months from April 2022 to March 2023.

Aman Desai, promoter & whole-time director of Aether Industries, said, “As we see demand improvement in the global chemical industry, we are significantly optimistic in our overall outlook. We have also recently made two major public announcements relating to Otsuka, Japan for the two products to be supplied to these Japanese company on exclusive basis and Aramco, Saudi Arabia for the Converge polyols technology, which reflect our continuous growth.

We remain upbeat and positive on all our business models for future outlook. As in last two quarters, we continue to see a significant upwards trend in inquiries, customer additions, contract renewals, and business being translated into revenues especially in the business models of CRAMS and Contract / Exclusive Manufacturing.”

Meanwhile, the company's board has approved raising of funds upto Rs 750 crore through issuance of equity shares or any other equity linked instruments or securities including convertible preference shares, and / or bonds including foreign currency convertible bonds / debentures / non-convertible debt instruments along with warrants / convertible debentures / securities and / or any other equity based instruments.

The funds would be raised on private placement basis or through one or more qualified institutions placement (QIP) and / or further public issue of equity and / or rights issue and / or through any other permissible mode.

Aether Industries is a specialty chemical manufacturer in India focused on producing advanced intermediates and specialty chemicals involving complex and differentiated chemistry and technology core competencies.

Shares of Aether Industries fell 1.43% to Rs 976.15 on the BSE.