Aarti Industries Q3 PAT up 4-fold at Rs772.5cr on accrued termination fee for contract cancellation by customer

6 Feb 2022 , 09:30 PM

Aarti Industries reported yoy doubling of total revenues for the Dec-21 quarter on consolidated basis at Rs2,375.98cr. On a sequential basis, the revenues were higher for the quarter by 53.13%.

During the quarter, Aarti Industries has recognized Rs.631.25cr receivable as accrual of termination fees payable by a client for cancellation of a long term supply contract.

In the absence of this payment, the growth in sales would have been 47% yoy. The company also declared an interim dividend of Rs.1 per share on par value of Rs.5.

The consolidated Profit after tax (PAT) for the Dec-21 quarter was up 367.41% at Rs772.49cr on the termination fee accrued from a client who had cancelled a long term supply contract.

In the absence of that inflow, the net profits would actually been flat to lower. However, the inventory efficiency gains in the quarter also helped the company post better numbers amidst a sharp spike in raw material costs.

Net margins increased from 13.93% in the Dec-20 quarter to 32.51% in the Dec-21 quarter. Net margins were higher sequentially too.

Financial highlights for Dec-21 compared yoy and sequentially

	Aarti Industries
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Income (Rs cr)	₹ 2,375.98	₹ 1,186.78	100.20%	₹ 1,551.58	53.13%
Net Profit (Rs cr)	₹ 772.49	₹ 165.27	367.41%	₹ 176.11	338.64%
Diluted EPS (Rs)	₹ 21.31	₹ 4.74		₹ 4.86
Net Margins	32.51%	13.93%		11.35%