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Axis Securities Report
Aarti Drugs Ltd. reported Q4 FY24 results that exceeded our expectations. revenue, Ebitda, and profit after tax grew by 2.3%, 22.3%, and 34.4% QoQ, respectively. Gross margins improved by 282 basis points sequentially due to a better product mix and a decline in input costs.
Additionally, Ebitda margins improved by 227 bps sequentially, driven by operating leverage from enhanced capacity utilisation. In the Formula Business segment, there was a notable growth of 19% YoY.
However, the specialty chemicals segment witnessed subdued numbers due to lower demand in the export segment.
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