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As compared with Q2 FY23, net profit declined by 26.61% while revenue from operations decreased by 13.71%.
Profit before tax slipped 45.33% to Rs 82 crore in second quarter of FY24 as against Rs 150 crore in corresponding quarter last year.
EBITDA de-grew by 12.7% to Rs 233 crore during the quarter. EBITDA margin improved to 14.6% in Q2 FY24 as against 14.5% in Q2 FY23.
On half year basis, the company net profit tumbled 38.46% to Rs 160 crore on 13% decline in revenue from operations to Rs 2,868 crore in H1 FY24 over H1 FY23.
On Outlook front, for FY24 the firm stated that macro concerns on demand continuing from FY23 and is expected to progressively improve in H2FY24. For FY25, recovery of volumes across the sector, ramp-up of capacities and higher operating leverages shall lead to EBITDA growth, commissioning of expanded capacities of NT or ethylation and Zone 4 to start gradually going onstream.
For FY26 and beyond, the company expects EBITDA to grow by approximately 20-25% CAGR driven by Zone 4 ramping up; new strategic opportunities and higher utilisation for existing capacities at Zone 1,2,3.
Rajendra Gogri – chairman & managing director at Aarti Industries, commented, “I am glad to share that we have reported a strong performance, during the challenging times, reflected by 16% gains in absolute EBITDA compared to the previous quarter. While the challenges with respect to global inventory destocking, high interest rates, recessionary trends across various end-markets, slowdown in export markets and geopolitical tension persists, we witnessed some recovery on QoQ basis.
This was possible due to our concerted efforts of enhancing our market position, optimizing our product mix and driving operational excellence. We are hopeful of maintaining the growth momentum in the upcoming quarters supported by better demand recovery across various end use industries. On the positive note, we continuously engage with our customers for increasing the market share, widen the market base, while anticipating the situation to normalise in next few quarters.”
Aarti Industries is engaged in manufacturing and dealing in speciality chemicals and pharmaceuticals.
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