Aarti Industries Q1 net surges 47% to Rs 61 cr

Chemical manufacturer Aarti Industries Ltd on Thursday reported a 46.99 percent jump in its net profit to Rs 60.90 crore for first quarter ended June 30. The company has reported a net profit of Rs 41.43 crore in same period last year. Total income for the quarter ended June 30, stood at Rs 683.07 crore.

Inspite of the increase in volumes by about 14 percent on year-on-year basis, the fall in RM prices, trailing lower crude prices, resulted into reduction of total income, a company statement said. EBITDA (earnings before interest, tax, depreciation and amortisation) for the quarter stood at Rs 131.91 crore compared with Rs 113.09 crore in the first quarter of FY15, an increase of 16.6 percent year-on-year. The company also expects to commission the second phase of its NCB (nitrocholoro benzene) expansion, thereby scaling it up from 57,000 tpa (tonnes per annum) to 75,000 tpa, by the end of Q2FY16, it said.

The recently concluded USFDA inspection had been favourable for the company. This would facilitate and expedite faster approvals for various APIs in pipeline, thereby increasing the presence in the regulated markets, it added. Consistent year-on-year growth in the speciality chemical segment with commissioning of various facilities and faster paced growth in pharma segment, along with favourable USFDA inspection report would help maintain the growth momentum, it said.