Q2FY24 Quarterly & H1FY24 Bi-Annual Result Announced for Aarti Drugs Ltd.
Pharmaceuticals company Aarti Drugs announced Q2FY24 & H1FY24 results: Consolidated Q2FY24: Revenue stood at Rs 642.2 crore as against Rs 687.8 crore, a decline of 6.6% YoY EBITDA stood at Rs 77.1 crore as against Rs 74.3 crore YoY. EBITDA Margin (%) came in at 12.0% PAT stood at Rs 39.6 crore as against Rs 38.7 crore YoY. PAT Margin (%) stood at 6.2% Consolidated H1FY24: Revenue stood at Rs 1,303.9 crore as against Rs 1,310.0 crore, a decline of 0.5% YoY EBITDA stood at Rs 161.8 crore as against Rs 141.7 crore YoY. EBITDA Margin (%) came in at 12.4% PAT stood at Rs 87.6 crore as against Rs 73.5 crore YoY. PAT Margin (%) stood at 6.7% Business Highlights: Standalone Q2FY24 revenue stood at Rs 577.5 crore as against Rs 624.8 crore, a decline of 7.6% YoY The standalone business contributed ~87% to the consolidated revenue for the quarter API volumes grew considerably at ~10%, led by secular growth across acute as well as chronic therapies ~67% of the revenues came from the domestic market and 33% from the exports market for Q2FY24 for a standalone business Domestic revenue grew by ~1.0% while exports declined by ~21.0% YoY for Q2FY24 Within the API business, the antibiotic therapeutic category contributed ~47%, anti-diabetic ~16%, anti-protozoal ~17%, anti-inflammatory ~10%, antifungal ~8% and the rest contributed ~2% to total API sales for Q2FY24 Q2FY24 revenue from formulation stood at Rs 86.6 crore as against Rs 82.5 crore, registering a growth of 5% YoY. ~49% of the revenue contribution is from exports during the quarter Commenting on the same, Adhish Patil, CFO & COO, Aarti Drugs said, “Despite the geopolitical uncertainties and macro-economic volatilities, the company was able to achieve ~10% volume growth YoY in APIs amid lower realisations, which impacted revenues in Q2FY24. In H1FY24, APIs revenue grew around ~1.0% YoY. However, we have witnessed improvement in margins, due to operational efficiencies and input cost stabilisation for the majority of our products. Moreover, export demand has been sluggish for some of the geographies for APIs in the H1FY24 on account of USD shortages, increased interest rates, and cautious spending by customers. The company witnessed a marginal increase in OPEX due to one-time buyback costs, Labour rates revision, and other expenses. Nevertheless, we are optimistic about attaining growth and margin goals. Formulation segment revenue stood at Rs 86.6 crore for the quarter, a growth of 5.0% YoY with exports contribution of ~49% whereas in H1FY24 revenue stood at Rs 176.5 crore, with a growth of 5.3% YoY. Specialty Chemical industry, globally, the demand visibility has been weak due to the absence of a couple of campaign-based products in H1FY24 which has impacted this segment. Moreover, there is some spillover of execution of campaign-based Specialty products into the next quarter. The capex for H1FY24 stood at ~Rs 109 crore and is expected to be in the range of Rs 250-300 crore for the full year FY24. We expect the Gujarat Sayakha Project, Tarapur Capex on Dermatology and Specialty Chemical to get completed by mid-H2FY24 which shall lead to improvement in margins once these projects are commissioned and capacity utilization is ramped up. Despite short-term challenges, we remain optimistic about the growth avenues for our API and non-API business. All our growth plans shall enable steady growth over the next few years, basis the completion of ongoing projects and better utilization of current capabilities. The pace of growth in exports is expected to continue in the formulation business.” Result PDF20-10-2023