|
Aarti
Industries consolidated net sales increased 34.17% to Rs 1685.01 crore in
Q2FY23 compared to Q2FY22. Operating
profit margin has declined from 20.29% to 15.85%, leading to 4.76% rise in
operating profit to Rs 267.01 crore. Raw
material cost as a % of total sales (net of stock adjustments) increased from
50.03% to 50.62%. Purchase of finished
goods cost fell from 3.80% to 3.75%.
Employee cost increased from 5.69% to 5.99%. Other expenses rose from 20.66% to
22.40%.
Other
income fell 96.08% to Rs 0.02 crore.
PBIDT rose 4.56% to Rs 267.03 crore.
Provision for interest rose 202.63% to Rs 43.73 crore.
PBDT
fell 7.32% to Rs 223.3 crore. Provision
for depreciation rose 26.96% to Rs 72.89 crore.
Profit
before tax down 18.04% to Rs 150.41 crore.
Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 25.93
crore, compared to Rs 33.57 crore.
Effective tax rate was 17.24% compared to 18.29%.
Minority
interest was nil in both the periods.
Net profit attributable to owners of the company decreased 17.02% to Rs
124.48 crore.
Equity
capital stood at Rs 181.25 crore as of 30 September 2022 to Rs 181.25 crore as
of 30 September 2021. Per share face
Value remained same at Rs 5.00.
Promoters’
stake was 44.16% as of 30 September 2022 compared to 44.21% as of 30 September
2021 .
For year-to-date (YTD)
results analysis
Net
sales of Aarti Industries have increased 28.09% to Rs 3295.29 crore. Operating profit margin has declined from
22.11% to 16.65%, leading to 3.55% decline in operating profit to Rs 548.51
crore. Raw material cost as a % of total
sales (net of stock adjustments) increased from 48.18% to 52.39%. Purchase of finished goods cost fell from
3.94% to 3.74%. Employee cost decreased
from 6.36% to 5.80%. Other expenses
rose from 20.58% to 20.77%.
Other
income fell 28.57% to Rs 0.4 crore.
PBIDT fell 3.57% to Rs 548.91 crore.
Provision for interest rose 67.33% to Rs 88.25 crore.
PBDT
fell 10.81% to Rs 460.66 crore.
Provision for depreciation rose 14.79% to Rs 144.64 crore. Fixed assets increased to Rs 5,373.00 crore
as of 30 September 2022 from Rs 5,365.19 crore as of 30 September 2021.
Profit
before tax down 19.07% to Rs 316.02 crore.
Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 56 crore,
compared to Rs 75.47 crore. Effective
tax rate was 17.72% compared to 19.33%.
Minority
interest was nil in both the periods.
Net profit attributable to owners of the company decreased 17.42% to Rs
260.02 crore.
Equity
capital stood at Rs 181.25 crore as of 30 September 2022 to Rs 181.25 crore as
of 30 September 2021. Per share face
Value remained same at Rs 5.00.
Promoters’
stake was 44.16% as of 30 September 2022 compared to 44.21% as of 30 September
2021
Effect of the approval
of Scheme of Arrangement
The
Scheme of Arrangement for the demerger of Pharma Business Undertaking from
Aarti Industries Limited (“the Company” or “the demerged company”) into its
wholly owned subsidiary Aarti Pharmalabs Limited (“the resulting company”), (
“the Scheme”) was approved by Honourable National Company Law Tribunal (NCLT),
Ahmedabad Bench on September 21, 2022 (which came into effect on October 17,
2022). Accordingly, all the assets and liabilities pertaining to the Pharma
Business Undertaking, including supporting manufacturing units, employees, cash
and cash equivalents and investments (including investments in subsidiaries and
joint ventures), as defined in the Scheme, stand transferred and vested into
the resulting company from its Appointed Date i.e. from July 01, 2021.
Pending
receipt of the NCLT approval for scheme of arrangement, financial statements of
the Company (before giving effect to scheme of
arrangement) for the quarter and half year ended 30th September 2021,
year ended 31st March 2022 and quarter ended 30th June 2022 were approved by the Board of Directors in their
meeting held on 30th October 2021, 27th May 2022 and 10th August 2022
respectively. Pursuant to the approval of the said scheme, we have recasted the
historic audited financials from the Appointed date of 1st July 2021 to carry
out the changes arising due to adoption of the scheme of arrangement. Hence the
audited financials, mentioned above, in respect of the historic periods have
been suitably recasted and thus are not comparable to the ones as announced in
past in respective board meetings.
Pursuant
to the approval of Scheme of Arrangement, Aarti Industries Limtied now has only
one segment, ie specaility chemical segment. Hence segment reporting was not
applicable..
Full year results
analysis
Net
sales of Aarti Industries has increased 35.05% to Rs 6085.51 crore. Sales of Speciality Chemicals segment has
gone up 62.60% to Rs 6,619.38 crore (accounting for 83.59% of total sales). Sales of Pharmaceuticals segment has gone up
36.50% to Rs 1,299.93 crore (accounting for 16.41% of total sales). Inter-segment sales rose Rs 517.18 crore to
Rs 919.35 crore.
Profit
before interest, tax and other unallocable items (PBIT) has jumped 91.60% to Rs
1,834.26 crore. PBIT of Speciality
Chemicals segment rose 116.24% to Rs 1,613.93 crore (accounting for 87.99% of
total PBIT). PBIT of Pharmaceuticals
segment rose 4.44% to Rs 220.33 crore (accounting for 12.01% of total
PBIT).
PBIT
margin of Speciality Chemicals segment rose from 18.33% to 24.38%. PBIT margin of Pharmaceuticals segment fell
from 22.15% to 16.95%. Overall PBIT
margin rose from 19.06% to 23.16%.
Operating
profit margin has jumped from 21.78% to 28.27%, leading to 75.25% rise in
operating profit to Rs 1,720.11 crore.
Raw material cost as a % of total sales (net of stock adjustments)
increased from 42.50% to 44.38%.
Purchase of finished goods cost fell from 5.36% to 4.30%. Employee cost decreased from 8.15% to
5.67%. Other expenses fell from 22.47%
to 18.33%.
Other
income rose 10% to Rs 0.77 crore. PBIDT
rose 75.20% to Rs 1720.88 crore.
Provision for interest rose 18.48% to Rs 102.33 crore.
PBDT
rose 80.67% to Rs 1618.55 crore.
Provision for depreciation rose 6.52% to Rs 246.4 crore.
Profit
before tax grew 106.48% to Rs 1,372.15 crore.
Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 186.25
crore, compared to Rs 129.33 crore.
Effective tax rate was 13.57% compared to 19.46%.
Minority
interest decreased 98.04% to Rs 0.23 crore.
Net profit attributable to owners of the company increased 126.50% to Rs
1,185.67 crore.
Equity
capital increased from Rs 87.12 crore as of 31 March 2021 to Rs 181.25 crore as
of 31 March 2022. Per share face Value
remained same at Rs 5.00.
Promoters’
stake was 44.19% as of 31 March 2022 ,compared to 46.82% as of 31 March
2021.
The
scrip trades at Rs 706
|
Aarti Industries : Consolidated
Results
|
|
Particulars
|
2209 (03)
|
2109 (03)
|
Var.(%)
|
2209 (06)
|
2109 (06)
|
Var.(%)
|
2203 (12)
|
2103 (12)
|
Var.(%)
|
|
Net Sales
|
1,685.01
|
1,255.86
|
34
|
3,295.29
|
2,572.62
|
28
|
6,085.51
|
4,506.10
|
35
|
|
OPM (%)
|
15.9
|
20.3
|
|
16.7
|
22.1
|
|
28.3
|
21.8
|
|
|
OP
|
267.01
|
254.87
|
5
|
548.51
|
568.68
|
-4
|
1,720.11
|
981.53
|
75
|
|
Other Inc.
|
0.02
|
0.51
|
-96
|
0.4
|
0.56
|
-29
|
0.77
|
0.7
|
10
|
|
PBIDT
|
267.03
|
255.38
|
5
|
548.91
|
569.24
|
-4
|
1,720.88
|
982.23
|
75
|
|
Interest
|
43.73
|
14.45
|
203
|
88.25
|
52.74
|
67
|
102.33
|
86.37
|
18
|
|
PBDT
|
223.3
|
240.93
|
-7
|
460.66
|
516.5
|
-11
|
1,618.55
|
895.86
|
81
|
|
Depreciation
|
72.89
|
57.41
|
27
|
144.64
|
126
|
15
|
246.4
|
231.31
|
7
|
|
PBT
|
150.41
|
183.52
|
-18
|
316.02
|
390.5
|
-19
|
1372.15
|
664.55
|
106
|
|
Share of Profit/(Loss) from Associates
|
0
|
0
|
-
|
0
|
0
|
-
|
0
|
0
|
-
|
|
PBT before EO
|
150.41
|
183.52
|
-18
|
316.02
|
390.5
|
-19
|
1372.15
|
664.55
|
106
|
|
EO Income
|
0
|
0
|
-
|
0
|
0
|
-
|
0
|
0
|
-
|
|
PBT after EO
|
150.41
|
183.52
|
-18
|
316.02
|
390.5
|
-19
|
1372.15
|
664.55
|
106
|
|
Taxation
|
25.93
|
33.57
|
-23
|
56
|
75.47
|
-26
|
186.25
|
129.33
|
44
|
|
PAT
|
124.48
|
149.95
|
-17
|
260.02
|
315.03
|
-17
|
1185.9
|
535.22
|
122
|
|
Minority Interest (MI)
|
0
|
-0.06
|
-
|
0
|
0.16
|
-
|
0.23
|
11.75
|
-98
|
|
Net profit
|
124.48
|
150.01
|
-17
|
260.02
|
314.87
|
-17
|
1185.67
|
523.47
|
127
|
|
EPS (Rs)*
|
#
|
#
|
|
#
|
#
|
|
32.7
|
14.4
|
|
|
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
|
|