Aarti Industries Q2 Review - Mixed Bag; Long-Term Story Intact: KRChoksey
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KRChoksey Research Report
Aarti Industries Ltd.’s consolidated revenue grew 32.3% YoY/17.8% QoQ to Rs 15.5 billion.
Specialty chemical revenue grew 36.2% YoY/20.8% QoQ to Rs 14.8 billion, while pharma sales grew 15.4% YoY/1.0% QoQ to Rs 2.7 billion.
Gross profit margin contracted by 368 basis points YoY and 665 bps QoQ to 47.0% in Q2 FY22,mainly due to higher raw material prices.
Ebitda grew 21.8% YoY to Rs 3.1 billion; on a sequential basis Ebitda was down by 1.3%.
Ebitda contracted 172 bps YoY/387 bps QoQ to 20.0% in Q2 FY22.
Depreciation rose by 29.2% YoY/3.6% QoQ to Rs 711 million, while finance cost dropped 16.6% YoY/51.7% QoQ to Rs 185 million.
Aarti Industries' adjusted profit after tax saw a growth of 25.5% YoY/6.8% QoQ to Rs 1.8 billion, while net profit margin fell of 61 bps YoY/117 bps QoQ to 11.3%.
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