Aarti Drugs Q3 revenue grows 20.5% yoy at Rs641.5cr

1 Feb 2022 , 09:35 AM

Aarti Drugs Limited, a Mumbai-based diversified and fully integrated pharmaceutical company, with interests in Active Pharmaceutical Ingredients (API), Formulation, Specialty Chemicals, and Intermediates announced its financial results on Monday for the quarter and nine-month ended December 31, 2021.

The company’s consolidated revenue for Q3FY22 stood at Rs641.5cr as against Rs532.3cr in Q3FY21, a growth of 20.5% yoy. EBITDA stood at Rs96.7cr as against Rs107.8cr yoy. EBITDA margin (%) came in at 15.1%.

Profit After Tax (PAT) in Q3FY22 stood at Rs58.3cr as against Rs67.8cr in Q3FY21, a decline of 14% yoy. PAT Margin (%) came in at 9.1%.

For 9MFY22, revenue from operations stood at Rs1,802.7cr as against Rs1,656.6cr in 9MFY21, up 8.8% yoy. EBITDA stood at Rs251.8cr as against Rs359.7cr yoy. EBITDA Margin (%) came in at 14.0%. PAT stood at Rs149.7cr in 9MFY22 as against Rs228.5cr yoy. PAT Margin (%) came in at 8.3%.

During early trade on Tuesday, Aarti Drugs Ltd was trading at Rs504.85 per piece up by Rs1.25 or 0.25% from its previous closing of Rs503.60 per piece on the BSE.

Standalone Business Highlights

• Standalone Q3 revenue stood at Rs579.9cr.
• The standalone business contributed ~91% to the consolidated revenue for the quarter.
• ~59% of the revenues came from the domestic market and 41% from the exports market for Q3FY22 for a standalone business.
• API volumes grew considerably at ~12%, led by secular growth across acute as well as chronic therapies.
• Increase in the contribution by chronic therapies led to improvement in product mix, which in turn improved the margins and profitability.
• Domestic revenue grew approximately by 4% while exports grew by around 19% yoy for Q3FY22.
• Within the API segment, the antibiotic therapeutic category contributed around 46%, antiprotozoal around 16%, anti-inflammatory around 10%, anti-diabetic around 14%, antifungal around 10% and the rest contributed around 5% to total API sales for Q3FY22.

Formulation Segment Highlights

• Revenue for formulation stood at Rs54.9cr as against Rs70.7cr yoy
• ~30% of the revenue came from exports during the quarter.

Adhish Patil, Chief Financial Officer — Aarti Drugs Limited said, “The company posted robust growth in revenue and profitability along with considerable improvement in the margins on a sequential basis. This robust performance was posted despite the multiple headwinds in terms of high raw material prices, high freight costs and coal prices. The margin expansion is primarily driven by proactive price hikes, secular API volume growth across therapies and strict cost control. The volume growth is expected to accelerate further, on the back of recently commissioned anti-diabetics capacity. As a result, the growth trajectory in the API segment is expected to accelerate in line with the volume growth in the upcoming quarters. This coupled with a growing share of niche products in chronic therapies and a strong API product launch pipeline is expected to augment the margin profile and profitability.”

He added, “the company witnessed a healthy growth in Specialty Chemicals and Intermediates both on a yoy as well as a sequential basis. A unique value proposition, niche product profile and upcoming capacities in chloro-sulphonation products are expected to bolster the growth momentum further.”