The buyback price is 59.29% premium to the ruling market price.

This represents 5.44% and 5.10% of the fully paid-up equity share capital and free reserves as per latest audited balance sheet of the company for the financial year ended 31 March 2023 on standalone and consolidated basis, respectively, on a proportionate basis through the tender offer.

The company also announced its Q1 results on 21 July 2023. On a consolidated basis, Aarti Drugs' profit after tax jumped 38% to Rs 48 crore on 6% increase in revenue to Rs 661.7 crore in Q1 FY24 over Q1 FY23.

Sequentially, PAT declined 15% while revenue slipped 11% in Q1 FY24 over Q4 FY23.

EBITDA stood at Rs 84.7 crore in Q1 FY24, up 26% over Q1 FY23 and down 10% over Q4 FY23. EBITDA margin stood at 12.8% in Q1 FY24, higher than 10.8% in Q1 FY23 and 12.7% in Q4 FY23.

Profit Before Tax (PBT) jumped 32% year-on-year to Rs 63.5 crore in Q1 FY24 over Q1 FY23.

Revenue from API segment increased 9% YoY to Rs 524.5 crore in Q1 FY24. Revenue from formulation business rose 6% YoY to Rs 89.9 crore in Q1 FY24. Revenue from specialty chemicals, intermediaries & others declined 18% YoY to Rs 46.7 crore in Q1 FY24.

Standalone Q1 FY24 revenue stood at Rs 591.6 crore as against Rs 551.2 crore, a growth of 7.3% YoY. The standalone business contributed ~86% to the consolidated revenue for the quarter.

Adhish Patil, CFO & COO, Aarti Drugs said, "The capex for Q1 FY24 stood ~Rs 48 crores and is expected to be in the range of Rs. 250-350 crores for the FY24. With all the Capex plans getting executed this fiscal year i.e Gujarat Saykha Capex, Tarapur Capex on Dermatology and Specialty chemical, which are high margin accretive segments that will gain better growth to our business. Due to some external factors, the project is now expected to come into commercial operations in Q3FY24.

Looking beyond the short-term challenges, we remain positive about the opportunities both in API and non-API business. The growth trajectory is expected to be healthy for all the segments in the upcoming period driven by the execution of existing projects and higher utilization of existing capacities. The pace of growth in exports is expected to continue in the formulation business."

Aarti Drugs is a pharmaceutical company. It manufactures active pharmaceutical ingredients (APIs), pharmaceutical intermediates, specialty chemicals, and formulations. Aarti Drugs has 12 manufacturing facilities, 9 of which are in Maharashtra, 2 in Gujarat, and 1 in Himachal Pradesh.