Aarti Industries Q1FY16 Net Profit at Rs. 60.90 Crores, Robust Y-o-Y Growth 47%

Synopsis

For the Quarter ended June 30, 2015:

• Total Income stood at Rs. 683.07 crores in Q1FY16

• EBITDA increased by 16.6% to Rs. 131.91 crores in Q1FY16 from Rs. 113.09 crores of Q1FY15

• Net profit increased by 46.99% to Rs. 60.90 crores for Q1FY16 from Rs. 41.43 crores in Q1FY15

• Q1FY16 EPS stood at Rs. 6.87 compared to Rs. 4.68 in Q1FY15 (Y-o-Y growth of 46.8%)                                                                                                                                                                                       

Aarti Industries Limited (AIL), a leading and highly integrated chemical manufacturer company involved in manufacturing of various benzene based downstream and derivative products, has declared its financial results for the first quarter ended June 30, 2015.

Total Income for the quarter ended June 30, 2015 stood at Rs. 683.07 crores. Inspite of the increase in volumes by about 14% YoY, the fall in RM prices, trailing lower crude prices, resulted into reduction of total income. EBITDA for the quarter stood at Rs. 131.91 crores compared to Rs. 113.09 crores in Q1FY15, an increase of 16.6% YoY. Comparing on yearly basis, Net Profit of the company increased by about 47% to Rs. 60.90 crores in Q1FY16 as against Rs. 41.43 crores registered during Q1FY15.

The Company had part-commissioned its scale up of PDA capacities, i.e, from 250 tpm to about 450 tpm in Q1FY16 and targets to scale it up to about 1000 tpm by the end of current financial year. The Company also expects to commission the second phase of its NCB expansion, thereby scaling it up from 57000 tpa (a year back) to 75000 tpa, by the end of Q2FY16.

Further, the recently concluded USFDA Inspection had been favorable for the company. This would facilitate and expedite faster approvals for various APIs in pipeline, thereby increasing the presence in the Regulated markets.

The Scheme of Amalgamation of Gogri & Sons Investments Pvt Ltd, Alchemie Leasing and Financial Pvt Ltd, Anushakti Holdings Ltd and Anushakti Chemicals & Drugs Ltd with Aarti Industries Ltd had been approved by the Hon. High Court of Bombay on July 10, 2015 and Hon. High Court of Gujarat at Ahmedabad on July 31, 2015. This shall result into a net reduction/cancellation of about 52,71,304 equity shares, 5.95% of equity Capital. Thus Equity shares would be reduced from 8.85 crs to 8.33 crs. This would result into increase in EPS, ROCE and ROE for the company.

Consistent Y-o-Y growth in the Speciality Chemical Segment with commissioning of various facilities and faster paced growth in Pharma segment, along with favourable USFDA Inspection Report would help maintain the growth momentum.

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.