Aarti Industries Q1 Review - Strong Show, Margin Positively Surprises: KRChoksey
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KRChoksey Research Report
Aarti Industries Ltd.’s consolidated revenue grew 40.5% YoY/8.9% QoQ to Rs 13.2 billion.
Specialty chemical revenue grew 50.2% YoY/12.5% QoQ to Rs 12.6 billion, while pharma sales grew 23.7% YoY/7.3% QoQ to Rs 2.4 billion.
Aarti Industries' gross profit margin expanded 135 basis points YoY to 53.7% in Q1 FY22, mainly due to lower inventory.
Though on QoQ basis, gross profit margin remained mostly flat (14 bps decline).
Ebitda grew 72.4% YoY/20.6% QoQ to Rs 3.1 billion. Ebitda margin expanded 442 bps YoY/231 bps QoQ to 23.8% in Q1 FY22.
Margin expansion was on account of higher margin in specialty segment (18.8% margin for Q1 FY22 against 15.4% margin for Q1 FY21).
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