By: IPP Bureau
Last updated : July 30, 2024 5:24 pm
Aarti Drugs Limited (Aarti Drugs), a Mumbai based diversified and fully integrated pharmaceutical company, with interests in Active Pharmaceutical Ingredients (API), Formulation, Specialty Chemicals and Intermediates announced its consolidated financial results for the quarter ending 30th June 2024.
Aarti Drugs has reported Q1 FY25 revenue at Rs. 556.5 crores as against Rs. 661.7 crores, a decline of 15.9% YoY. EBITDA stood at Rs. 66.1 crores as against Rs. 84.7 crores, a decline of 22.0% YoY . EBITDA Margin (%) stood at 11.9%. PAT stood at Rs. 33.3 crores as against Rs. 48.0 crores, a decline of 30.6% YoY . PAT Margin (%) stood at 6.0%.
Commenting on the result, Adhish Patil, CFO & COO, Aarti Drugs Limited said, “During the quarter gone by, there has been a drop in revenues and profitability mainly due to lower realizations stemming from negative rate variance and subdued market demand in APIs business. Relatively lower capacity utilization for the quarter weighed negatively on the EBITDA margins. Going ahead in FY25, we anticipate an improvement in margins, mostly driven by an anticipated growth in export sales and backward integration. Formulation segment’s revenue stood at Rs. 70.4 crores for the quarter, a growth of 4.2% Q-o-Q.
“In last quarter, we commenced our facility for dermatology products in Tarapur. We faced teething issues on the same which led to increased costs of ~Rs. 6 crores in the quarter. We expect to ramp up the production of this facility in Sep’24 and Dec’24 quarters progressively.
“The greenfield project at Gujarat Sayakha for Speciality Chemicals is on track which we plan to commence by end of Q2 FY25. With this, the operating leverage is expected to kick in from the second half of the year with improved capacity utilization. During Q1 FY25, the Company incurred Capex of Rs. 52 crores mainly towards capacity expansion, backward integration and new product launches. We anticipate a total Capex of ~Rs. 200 crores for the full year. This Capex would be mainly through internal accruals and partly through term loans.
In June 2024, a fire occurred at N-198 unit which manufactures certain API products for external customers. Production operation of the said unit had been temporarily disrupted which began operations in July 2024. The unit has adequate insurance coverage for the same. The Pharma API manufacturing industry is constantly evolving, and we are committed to staying ahead of the curve. We continue to expand our capabilities and enhance our offerings to meet the ever-changing needs of our customers. We also plan to invest in new technologies and equipment that will help us streamline our processes and improve efficiency.”