Aarti Inds hits 52-week high after Q2 PAT drops 43% YoY to Rs 52 cr

Aarti Industries tanked 9.74% to Rs 428.50 after the company reported 42.86% decline in consolidated net profit to Rs 52 crore in Q2 FY25 as against Rs 91 crore posted in Q2 FY24.

However, Revenue from operations jumped 11.97% year on year (YoY) to Rs 1,628 crore in Q2 FY25.

Profit before exceptional items and tax for Q2 FY25 was at Rs 32 crore, down 60.98% from Rs 82 crore in Q2 FY24. Exceptional loss for the quarter was Rs 2 crore.

EBITDA de-grew by 13.3% to Rs 202 crore during the quarter. EBITDA margin declined to 11.3% in Q2 FY25 as against 14.6% in Q2 FY24.

Non-Energy Business volumes jumped 22% YoY. The company said that volume uptick visible across end applications into dyes, pigments, polymer additives, while agrochemicals continues to remain soft.

Energy business volumes declined 1% YoY. The firm said that steep drop in refining margins & gasoline-naphtha delta impacted the volumes in the Energy application.

On half year basis, the company net profit jumped 18.13% to Rs 189 crore on 21.41% rise in revenue from operations to Rs 3,482 crore in H1 FY25 over H1 FY24.

On outlook front, for FY25 the firm anticipates consistent volume growth over 3 yrs driven by increased capacities. Operating leverages and cost optimisation initiatives to drive EBITDA growth beyond volume growth.

Capex for FY25 is estimated at Rs 1,300-1,500 crore, revised from the earlier estimate of Rs 1,500-1,800 crore, with FY26 capex projected around Rs 1,000 crore.

The target EBITDA range is Rs 1,800-2,200 crore over the next 3 years, with a Debt/EBITDA ratio of fewer than 2.5x and ROCE exceeding 15%.

Aarti Industries is engaged in manufacturing and dealing in speciality chemicals and pharmaceuticals.

The counter hit a 52 week low of Rs 427.30 on the BSE.

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