Aarti Industries Shares Plunge on Q2 Profit Miss

11 Nov 2024 , 12:23 PM

Following Aarti Industries’ announcement that its profit after tax (PAT) decreased 43% year over year (YoY) to Rs 52 crore for the July–September quarter, the company’s shares plunged 9.3% to an intraday low of Rs 430.20 on the BSE.

EBITDA for Aarti Industries was Rs 202 crore, a 13% YoY and 35% QoQ decrease.

In the same quarter of the prior fiscal year, the amount was Rs 137 crore. In the meantime, the number had decreased by 62% on a quarter-over-quarter (QoQ) basis.

Nonetheless, the company’s non-energy business volumes increased by 22% year over year, and end applications for dyes, pigments, and polymer additives showed growth. The segment for agrochemicals stayed soft.

Following notable expansion in FY23, the agrochemical industry has been dealing with inventory correction and pricing pressure as a result of decreased demand since FY24.

Pharma’s volume increased significantly during the epidemic and has now stabilised since FY24.

However, compared to the Rs 1,597 crore recorded in the same quarter of FY24, the operating revenue increased by 12% YoY to Rs 1,786 crore.

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