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Aarti Industries spurts after winning contract

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Aarti Industries rose 7.58% to Rs 945 at 12:17 on after the company said it bagged big multi-year contract from global agricultural firm for supplying an agrochemical intermediary.

The announcement was made during trading hours today, 15 June 2017.

Meanwhile, the S&P Sensex was down 44.89 points, or 0.14% to 31,111.02.

On the BSE, 43,000 shares were traded in the counter so far, compared with average daily volumes of 23,915 shares in the past one quarter. The stock had hit a high of Rs 1,024.95 so far during the day, which is also a record high for the counter. The stock had hit a low of Rs 874.40 so far during the day. The stock hit a 52-week low of Rs 482 on 24 June 2016.

The stock had underperformed the market over the past one month till 14 June 2017, falling 8.20% compared with 1.87% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 10.54% as against Sensex's 5.31% rise. The scrip had also outperformed the market in past one year, rising 75.28% as against Sensex's 16.57% rise.

The mid-cap speciality chemicals company has equity capital of Rs 41.66 crore. Face value per share is Rs 5.

Aarti Industries announced that it has entered into a multi-year contract with a global agriculture company to supply a high value agrochemical intermediary.

The contract entails supply of a high value agrochemical intermediary, for use in herbicides, over a 10 year period. The supplies are expected to commence from the financial year ending March 2020 and will generate expected revenues of approximately Rs 4000 crore (approximately $620 million) over the contract term. The project will entail investment of about Rs 400 crore (approximately $62 million) by Aarti Industries.

The speciality chemicals market has been growing at 14% over the last five years and the market size is expected to touch $70 billion by 2020, the company said in a statement.

Net profit of Aarti Industries rose 6.8% to Rs 74.33 crore on 12.2% rise in net sales to Rs 834.35 crore in Q4 March 2017 over Q4 March 2016.

Aarti Industries is India's leading producer of Benzene-based basic and intermediate chemicals in India. It is one of the leading supplier to global manufacturers of dyes, pigments, agrochemicals, pharmaceuticals & rubber chemicals.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, June 15 2017. 12:17 IST