Aarti Drugs – Soft Q4, Capacity Expansion To Drive Growth: Anand Rathi

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As a few export orders of subsidiaries spilled over to the next quarter, Aarti Drugs Ltd.’s Q4 FY21 was below expectation.

Sales grew 11.6% YoY to Rs 5 billion.

Growth was driven by formulations (up 22.1% YoY) and specialty chemicals (89%).

The gross margin contracted 72 basis points to 36.3% due to lower share of exports and higher raw material cost.

The Ebitda margin, though, expanded slightly (27 basis points) to 16.1% due to curtailed overheads.

Through better utilisation of capacities and additions, the company is on track to deliver 18% revenue growth in the next four to five years.

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Anand Rathi Aarti Drugs Company Update.pdf


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