Aarti Industries Q3FY25 results: Revenue rises 6.2% YoY to Rs 1,840 crore, net profit falls 62.9% to Rs 46 crore

Finance costs rose to ₹85 crore in Q3, reflecting increased borrowing expenses.

Aarti Industries Limited, a key player in the specialty chemicals sector, has announced its financial results for the third quarter (Q3) and nine months ended December 31, 2024. Despite market volatility, the company maintained a steady performance, driven by operational efficiencies and strategic investments.

Financial Highlights (Standalone)

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  • Revenue from operations (Net): ₹1,749 crore, up slightly from ₹1,724 crore in Q3 FY23.
  • Total income: ₹1,755 crore, compared to ₹1,732 crore in the same period last year.
  • Net profit after tax: ₹47 crore, down from ₹124 crore in Q3 FY23.
  • EBITDA Margin: 11.9%, reflecting a slight decline from 13.8% a year ago.
  • Earnings per Share (EPS): ₹1.31, compared to ₹3.41 in Q3 FY23.

Financial Highlights (Consolidated)

  • Revenue from operations (Net): ₹1,840 crore, up from ₹1,732 crore in Q3 FY23.
  • Total income: ₹1,845 crore, compared to ₹1,740 crore last year.
  • Net profit after tax: ₹46 crore, lower than ₹124 crore in Q3 FY23.
  • EBITDA Margin: 11.4%, compared to 13.7% in the previous year.
  • EPS: ₹1.27, compared to ₹3.42 in Q3 FY23.

Key Operational and Financial Trends

  • The company continues to face cost pressures due to fluctuations in raw material prices, which impacted overall margins.
  • Finance costs rose to ₹85 crore in Q3, reflecting increased borrowing expenses.
  • The company reported a positive impact of forward contracts used to hedge exports, with gains recognized under other comprehensive income.
  • Aarti Industries retained its AA/Stable credit rating, demonstrating financial stability despite market challenges.

Aarti Industries remains committed to expanding its specialty chemicals portfolio and enhancing operational efficiencies. The company is also focusing on sustainable growth initiatives, including investment in green technologies and international market expansion.

Commenting on the results, Rajendra V. Gogri, Chairman & Managing Director, stated:
“Despite a challenging macroeconomic environment, we continue to strengthen our market position through strategic investments and operational excellence. Our long-term growth prospects remain intact as we enhance our product offerings and expand into new markets.”

With a strong balance sheet and continued focus on innovation, Aarti Industries is well-positioned to navigate economic uncertainties and drive long-term value creation for its stakeholders.