Aarti Drugs Expects Sales To Pick Up In Fourth Quarter
An employee inspects a sample of pills. (Photographer: Antoine Antoniol/Bloomberg)

Aarti Drugs Expects Sales To Pick Up In Fourth Quarter


Aarti Drugs Ltd. expects quarterly sales and volume growth to pick up in the ongoing quarter and financial year 2020, according to its Chief Financial Officer Adhish Patil.

The company’s focus would remain on volume growth, while bettering its sales in the current quarter, Patil told BloombergQuint, adding that the drug maker is also working on bringing down its working capital. “We are actively focussing on reducing our working capital, which is quite high.”

Aarti Drugs had reported a double-digit rise in revenue in the October-December period, but a drop in its quarterly profit and margin contraction dragged down the results.

Shortages in raw material and quality issues hindered the growth in the December-ended quarter, Patil said, adding that crude oil prices and haphazard forex movement were also not favourable for the company. “Many of these factors would stabilise going forward.”

Q3 Result Highlights (YoY)

  • Revenue rose 13 percent to Rs 380 crore
  • Net profit down 10 percent at Rs 20.9 crore
  • Ebitda slips 3 percent to Rs 52.2 crore
  • Margin shrunk to 13.7 percent, from 16.1 percent
  • Higher raw material costs hurt margin
  • Raw material costs jumped 34 percent at Rs 276 crore

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