Aarti Industries Ltd.'s second-quarter profit declines but beats analysts' estimates.
The company's net profit fell 26.6% year-on-year to Rs 91 crore in the quarter ended September, according to an exchange filing on Saturday. This compares with a Bloomberg estimate of Rs 80.25 crore.
Aarti Industries Q2 Highlights (Consolidated, YoY)
Revenue down 13.7% at Rs 1,454 crore. (Bloomberg estimate: Rs 1,622.91 crore).
Ebitda drops 12.7% to Rs 233 crore. (Bloomberg estimate: Rs 225.04 crore).
Margin at 16.02% vs 15.84% (Bloomberg estimate: 13.90%).
Net profit down 26.6% at Rs 91 crore. (Bloomberg estimate: Rs 80.25 crore).
The performance improved on a sequential basis due to volume gains in several products
Headwinds related to inventory destocking, demand pressure from export markets and geopolitical uncertainties among others persisted during the quarter
Ebitda performance was supported by volume expansion with stable-to-better realisation for some products; saw balanced contribution from both regular and nonregular markets.
Interest cost was higher on account of mark-to-market/revaluation loss of about Rs 12 crore with respect to unhedged long-term loans
"I am glad to share that we have reported a strong performance, during the challenging times, reflected by 16% gains in absolute Ebitda compared to the previous quarter. While the challenges with respect to global inventory destocking, high interest rates, recessionary trends across various end-markets, slowdown in export markets and geopolitical tension persists, we witnessed some recovery on Q-o-Q basis, said Rajendra Gogri, chairman and managing director at Aarti Industries.
This was possible due to our concerted efforts of enhancing our market position, optimising our product mix and driving operational excellence, he said. "We are hopeful of maintaining the growth momentum in the upcoming quarters supported by better demand recovery across various end use industries."
Shares of the company rose 9.37% at Rs 503.70 apiece on Monday, compared with a rise of 0.64% in the benchmark NSE Nifty 50.
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