Aarti Drugs Q4 Results Review - API Prices Bottomed Out: Axis Securities

In the API sector, a positive shift in the export landscape is anticipated in the near future, supported by interest rate reductions, low stock levels, and an upswing in demand.

Colorful pills. (Source: freepik)

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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.

Click on the attachment to read the full report:

Axis Securities Aarti Drugs Result Update.pdf
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Also Read: Kansai Nerolac Q4 Results Review- Likely Market Share Gains In Economy Segments, Ancillaries: ICICI Securities

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