Aarti Industries Ltd FY15 Consolidated Total Income Grows 10.46% to Rs 2,908 Crore

- Q4FY15 Net Profit at Rs 53 cr, Total income at Rs 678 cr

- Board recommends a Final Dividend of Rs. 1.75 (35%) per equity share

For the Quarter ended March 31, 2015:

On a standalone basis:

• Total Income stood at Rs. 678 crore in Q4FY15, compared to Rs. 744 crore in Q4FY14 and Rs. 681 crore in Q3FY15.

• Net profit stood at Rs. 53 crore in Q4FY15, a rise in 12.64 % as compared to Rs. 47 crore in Q4FY14 and is up by 23.01 % as compared to Rs. 43 crore in Q3FY15.

• Q4FY15 EPS stood at Rs. 5.95 Vs Rs. 5.29 in Q4FY14 (up by 12.48 %) and Rs. 4.84 in Q3FY15 (up by 22.93 %)

For the Full Year Ended March 31, 2015:

On a consolidated basis:

• Total Income stood at Rs. 2,908 cr in FY 2015, up by 10.46 % as compared to Rs. 2,632 cr in FY 2014

• EBITDA stood at Rs. 466 cr FY 2015 as compared to Rs. 401 cr in FY 2014 (up by 16 %)

• Net profit stood at Rs. 206 cr FY 2015 as compared to Rs. 162 cr in FY 2014 (up by 26.74 %)

• FY 2015 EPS stood at Rs. 23.24, a rise in 26.74 % as compared to Rs. 18.34 in FY 2014

• Total Dividend of Rs. XXXX (XX%) per Equity Share                                                                                                                                                                                                                               

Aarti Industries Limited (AIL), a leading chemical company, today declared its financial results for the fourth quarter and the full financial year ended March 31, 2015.

On a standalone basis, the company posted a net profit of Rs. 52.76 crore during Q4FY15, a rise in 12.64 %, compared to Rs. 46.84 crore during Q4FY14 and a rise in 23.01 %, compared to Rs. 42.89 crore during Q3FY15. Total Income for the quarter ended March, 2015 stood at Rs. 677.48 crore, compared to Rs. 744.14 crore in Q4FY14 and was Rs. 692.24 crore in Q3FY15 . Q4FY15 EPS rose by 12.48 % to Rs. 5.95 as compared to Rs. 5.29 in Q4FY14 and a rise in 22.93% as compared to Rs.4.84 in Q3FY15.

The Board of Directors has recommended a Final Dividend of Rs. 1.75 (35%) per equity share for the financial year ended 31^st March 2015. This is in addition to Interim Dividend of Rs. 3.75 already paid, thereby making a total Dividend of Rs. 5.50 (110%) per Equity Share for the financial year. Total Dividend for FY 2014 was Rs 4.50 (90%) per Equity Share.

For the full financial year ended March 31, 2015, on a standalone basis, the Company’s Total Income stood at Rs. 2870.65 crore, up by 9.04% as compared to Rs. 2,632.77 crore in FY 2014.

Operating Profit rose by 15.42 % to Rs. 456.48 crore as compared to Rs. 395.48 crore in FY 2014, Net Profit rose by 26.30 % to Rs. 187.80 crore as compared to Rs.148.69 crore in FY 2014 and the EPS at Rs. 21.20, up by 26.34 % as compared to Rs. 16.78 in FY 2014.

On a consolidated basis, the Company’s Total Income stood at Rs. 2907.96 crore, up by 10.46 % as compared to Rs. 2,632.49 crore in FY 2014. Operating Profit rose by 16 % to Rs. 465.69 crore as compared to Rs. 401.48 crore in FY 2014, Net Profit rose by 26.74 % to Rs. 205.88 crore as compared to Rs. 162.44 crore in FY 2014 and the EPS at Rs. 23.24, up by 26.72 % as compared to Rs. 18.34 in FY 2014.

As compared to Q3FY 2015, wherein there had been an forex m2m loss of about Rs 4 crs, the company had provided for a m2m gain by about 3 crs on account of the appreciation of Indian Rupee during Q4FY 2015. The Company maintains a hedge position of about 2-3 months to secure its exports for the forthcoming period.

The fall in crude prices which began in Q3 had extended in Q4 as well. As a result the prices of crude-linked products had also declined in similar manner. Benzene which is one of our major raw materials and had also followed the trend and had fallen from the price of Rs. 85 per kg for Q2, to about Rs. 70 per kg for Q3 and further below upto Rs 50 in Q4 FY 2015.

The company’s inventory of Benzene as a raw material is not more than 4 to 5 days due to significant volume of daily consumption and further due to limitation of Storage facility. Hence there would not be a major impact of price fall on the RM inventories. However, Benzene would also be present as a component of various final products in our overall value chain. As a result the inventory is subjected to mark down by about Rs 10-11 crore. As the company’s most of sales are on cost plus basis, the fall in RM prices results into decline in topline, but absolute EBIDTA remains fairly constant, thereby resulting into increase into Operating Margin percentage.

The Company’s Acid Division, which had taken mandatory annual shutdown in Q3 FY 2015 had resumed operations at full capacity in Q4 FY 2015, thereby resulting into increase EBIDTA by about Rs 4 crs in Q4 v/s Q3.

Further with the commissioning of first phase of NCB expansion, the volumes of NCB had started increasing gradually. During Q4 the company had manufactured NCB s of about 14,780 tons as against the production of about 12,980 tons for Q3 FY 2015. The incremental capacities increase our market share for NCB in domestic and global markets and also provide adequate feedstock for the related downstream products, having higher EBIDTA.

While in case of Pharma segment, the EBIT were largely in line with the Q3 numbers’ estimates, with the increased presence in the regulated markets, we expect the segment to grow by about 20% over next 3-4 yrs.

Commenting on the performance of the company Mr. Rajendra Gogri, Chairman and Managing Director, Aarti Industries Ltd, said, “We are happy to present the numbers with growth in line with the projections given earlier. During the year, we had witnessed the increase in Operating Profits. The commissioning of various ongoing projects and new projects over next 8 quarters would help us maintain our growth momentum and target a bottomline CAGR of 20% – 25% for next 3 to 4 years.”

About Aarti Industries Ltd (NSE Symbol: AARTIIND; BSE Scrip Code: 524208)

Aarti Industries Ltd (http://www.aartigroup.com), incorporated in the year 1984 and listed on stock exchanges in 1992, is a well known name in the field of Chemical Industry and is a leading supplier to global manufacturers of Dyes, Pigments, Agrochemicals, Pharmaceuticals & rubber chemicals.

Aarti Industries Ltd (AIL) is also a leading domestic player in nitrochlorobenzene (NCB) based specialty chemical business with the largest domestic manufacturing capacity of 60,000 tonnes per annum. The company offers over 150 products and is the market leader in more than 75% of its top 50 products. AIL has 16 manufacturing units spread across Gujarat, Maharashtra, Madhya Pradesh and Silvassa.

AIL is among the largest producers of benzene based basic and intermediaries in India. It is also among the largest integrated manufacturers of dimethyl sulphate (DMS), an organic specialty chemical which uses methanol and sulphur as feedstock

AIL has a diversified end-user base for its products with application into end-user industries such as dyes, pigments, FMCG, agrochemicals, pharmaceuticals, polymers etc. It has wide customer base of over 1,000 customers spread over 60 countries across the globe with major presence in USA, Europe, Japan and India.