AARTIIND · Chemicals
Aarti Industries Ltd. reported revenue of ₹1,628 cr for July to September 2024, +12.0% on the year and −12.0% on the quarter.
Operating profit (EBITDA) was ₹197 cr, a margin of 12.1%, −392 bps on the year and −438 bps on the quarter. It is the narrowest margin of the last 6 quarters (range 12.1% to 16.5%). Operating costs grew +17.2%, faster than revenue at +12.0%, so operating profit grew less than sales.
Net profit was ₹52.0 cr, −42.9% on the year and −62.0% on the quarter, with earnings per share of ₹1.43. Profit before other income, one-offs and tax fell 67.1%, so 24 points of the headline growth came from outside the core business.
Speciality chemicals are read on volumes and pricing, with Chinese supply a recurring swing factor; inventory destocking can hit a quarter without a change in demand. The quarterly statements do not carry volumes against prices, capacity utilisation and new molecules; those come with the filing read.
On earnings per share of ₹12.27 over the last four quarters, the stock at ₹505.50 trades at 41.2 times trailing earnings.
Written from the quarterly statements. The filing read adds the balance sheet and cash flow filed with this quarter, the auditor's review, segment results, one-off items line by line and what management said on the call.
A tax credit added to profit this quarter. Deferred tax recognised, or a reversal?
Profit before tax ₹34.0 cr; tax −₹18.0 cr, a credit.
Source: Quarterly statements
Operating margin fell sharply on the year. Pricing, input costs, or mix?
EBITDA margin 12.1%, −392 bps on the year (−438 bps on the quarter).
Source: Quarterly statements
Could not run on this quarter: Exceptional items that recur, Cash behind the profit, Receivables against sales, Inventory against sales, Borrowing while holding cash, Auditor's review or audit report, IPO money used as stated, Related-party transactions, Exits, postponements, restatements, Promoter pledges and allotments, Earlier promises against delivery, When the results were filed. Most need the filing read (balance sheet, cash flow, auditor, disclosures).
Net profit a year ago, each driver's change, and net profit now. Blue added profit, red took it away.
This quarter's filing carries a balance sheet and a cash flow statement. The cash, receivables and borrowing checks run once the filing read is in.
| Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | ₹1,732 cr | ₹1,773 cr | ₹1,851 cr | ₹1,628 cr | ₹1,843 cr | ₹1,949 cr | ₹1,675 cr | ₹2,100 cr | ₹2,318 cr | ₹2,205 cr | ₹2,387 cr | ₹3,669 cr |
| YoY | — | — | +31% | +12% | +6% | +10% | −10% | +29% | +26% | +13% | +43% | +75% |
| EBITDA margin | 15.0% | 16.0% | 16.5% | 12.1% | 12.5% | 13.4% | 12.7% | 13.9% | 13.8% | 15.5% | 16.0% | 11.2% |
| Other income, % of PBT | 7% | −1% | 4% | 21% | 13% | 3% | 10% | 24% | −11% | 1% | 3% | 3% |
| Exceptional items | — | — | — | — | — | — | — | — | — | — | — | — |
| Tax rate | −7% | −5% | 6% | — | −15% | −9% | −2% | −14% | −13% | −23% | 14% | 17% |
| Net profit | ₹124 cr | ₹132 cr | ₹137 cr | ₹52.0 cr | ₹46.0 cr | ₹96.0 cr | ₹43.0 cr | ₹106 cr | ₹133 cr | ₹137 cr | ₹155 cr | ₹168 cr |
| YoY | — | — | +96% | −43% | −63% | −27% | −69% | +104% | +189% | +43% | +260% | +58% |
| Core profit YoY | — | — | +96% | −67% | −68% | −33% | −73% | +163% | +274% | +29% | +361% | +177% |
| EPS | ₹3.42 | ₹3.64 | ₹3.78 | ₹1.43 | ₹1.27 | ₹2.65 | ₹1.19 | ₹2.92 | ₹3.67 | ₹3.78 | ₹4.27 | ₹4.63 |
| Flags | 1 | 1 | 1 | 2 | 2 | 1 | 2 | 2 | 1 | 2 | ✓ | ✓ |
Each quarter is read with the same rules. Balance-sheet and cash checks run on half-year and annual quarters; filing-read checks run where a read exists.
Aarti Industries Ltd. reported revenue of ₹1,628 cr (+12.0% on the year) and net profit of ₹52.0 cr (−42.9% on the year) for July to September 2024.
Profit before other income, exceptional items and tax moved −67.1% on the year, against −42.9% for reported profit.
2 checks raised a question: A tax credit added to profit this quarter. Deferred tax recognised, or a reversal?
No. FinMinutes reports what was filed and the questions the numbers raise. It does not recommend buying, selling or holding any security.
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