Capitaline

Results 08-Aug-21

Analysis

Aarti Industries

OP up 72%, NP up 101%

Aarti Industries consolidated net sales increased 40.48% to Rs 1316.76 crore in Q1FY22 compared to Q1FY21. Sales of Speciality Chemicals segment has gone up 50.22% to Rs 1,263.12 crore (accounting for 84.02% of total sales). Sales of Pharmaceuticals segment has gone up 23.66% to Rs 240.23 crore (accounting for 15.98% of total sales).

Operating profit margin has jumped from 19.42% to 23.83%, leading to 72.43% rise in operating profit to Rs 313.81 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 44.05% to 46.52%. Purchase of finished goods cost fell from 5.64% to 4.06%. Employee cost decreased from 9.20% to 6.96%. Other expenses fell from 22.44% to 20.52%.

Other income fell 77.27% to Rs 0.05 crore. Provision for interest rose 51.22% to Rs 38.29 crore. Profit before interest, tax and other unallocable items (PBIT) has jumped 62.81% to Rs 284.80 crore. PBIT of Speciality Chemicals segment rose 82.96% to Rs 237.15 crore (accounting for 83.27% of total PBIT). PBIT of Pharmaceuticals segment rose 5.16% to Rs 47.65 crore (accounting for 16.73% of total PBIT).

PBIT margin of Speciality Chemicals segment rose from 15.42% to 18.77%. PBIT margin of Pharmaceuticals segment fell from 23.32% to 19.84%. Overall PBIT margin rose from 16.90% to 18.94%.

Provision for depreciation rose 31.93% to Rs 68.59 crore. Profit before tax grew 97.31% to Rs 206.98 crore. Provision for tax was expense of Rs 41.9 crore, compared to Rs 21.7 crore. Effective tax rate was 20.24% compared to 20.69%. Minority interest decreased 83.58% to Rs 0.22 crore. Net profit attributable to owners of the company increased 101.39% to Rs 164.86 crore.

Promoters’ stake was 44.90% as of 30 June 2021 compared to 47.45% as of 30 June 2020 .

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 955

Aarti Industries : Consolidated Results
Particulars	2106 (03)	2006 (03)	Var.(%)	2103 (12)	2003 (12)	Var.(%)
Net Sales	1,316.76	937.33	40	4,506.10	4,186.31	8
OPM (%)	23.8	19.4		21.8	23.4
OP	313.81	181.99	72	981.53	977.33	0
Other Inc.	0.05	0.22	-77	0.7	8.84	-92
PBIDT	313.86	182.21	72	982.23	986.17	0
Interest	38.29	25.32	51	86.37	124.78	-31
PBDT	275.57	156.89	76	895.86	861.39	4
Depreciation	68.59	51.99	32	231.31	185.21	25
PBT	206.98	104.9	97	664.55	676.18	-2
Share of Profit/(Loss) from Associates	0	0	-	0	0	-
PBT before EO	206.98	104.9	97	664.55	676.18	-2
EO Income	0	0	-	0	0	-
PBT after EO	206.98	104.9	97	664.55	676.18	-2
Taxation	41.9	21.7	93	129.33	129.42	0
PAT	165.08	83.2	98	535.22	546.76	-2
Minority Interest (MI)	0.22	1.34	-84	11.75	10.68	10
Net profit	164.86	81.86	101	523.47	536.08	-2
EPS (Rs)*	#	#		14.4	14.8
Notes
* EPS is on current equity of Rs 181.25 crore, Face value of Rs 5, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

Aarti Industries : Consolidated Segment Results
	Quarter ended				Year ended
	% of (Total)	202106	202006	Var.(%)	% of (Total)	202103	202003	Var.(%)
Sales
Speciality Chemicals	84	1,263.12	840.85	50	83	4,151.40	3,864.95	7
Pharmaceuticals	16	240.23	194.27	24	17	871.88	755.74	15
Total Reported Sales	100	1,503.35	1,035.12	45	100	5,023.28	4,620.69	9
Net Sales		1,503.35	1,035.12	45		5,023.28	4,620.69	9
PBIT
Speciality Chemicals	83	237.15	129.62	83	79	752.75	814.11	-8
Pharmaceuticals	17	47.65	45.31	5	21	204.58	137.46	49
Total PBIT	100	284.8	174.93	63	100	957.33	951.57	1
Less : Interest		38.29	25.32	51		86.37	124.78	-31
Add: Other un-allcoable		-39.53	-44.71	-12		-206.41	-150.61	37
PBT		206.98	104.9	97		664.55	676.18	-2

Previous News

Aarti Industries allots 2,037 equity shares under ESOP
( Corporate News - 24-Sep-24 18:46 )

Aarti Industries Ltd leads losers in 'A' group
( Hot Pursuit - 13-Aug-24 15:00 )

Aarti Industries
( Results - Analysis 10-Aug-24 08:29 )

Aarti Inds Q1 PAT soars 96% YoY to Rs 137 cr
( Hot Pursuit - 10-Aug-24 16:31 )

Aarti Industries consolidated net profit rises 95.71% in the June 2024 quarter
( Results - Announcements 10-Aug-24 07:30 )

Aarti Industries to conduct board meeting
( Corporate News - 03-Aug-24 09:47 )

Aarti Industries schedules AGM
( Corporate News - 11-Jul-24 11:01 )

Aarti Industries allots 13,178 equity shares under ESOP
( Corporate News - 04-Jul-24 20:31 )

Aarti Inds appoints Suyog Kalyanji Kotecha as CEO
( Hot Pursuit - 31-May-24 08:38 )

Board of Aarti Industries appoints CEO and directors
( Corporate News - 30-May-24 17:11 )

Board of Aarti Industries recommends final dividend
( Corporate News - 11-May-24 09:11 )