Aarti Industries Ltd. witnessed a 4% drop in its share price following the announcement of its financial results for the third quarter (Q3) and nine months ending December 31, 2024.
The company reported a steady increase in revenue, with net operations revenue reaching ₹1,840 crore, up from ₹1,732 crore in Q3 FY23. Total income also saw a growth, rising to ₹1,845 crore compared to ₹1,740 crore in the same quarter last year.
However, Aarti Industries’ net profit after tax significantly decreased to ₹46 crore, down from ₹124 crore in Q3 FY23. This decline in profitability was reflected in a lower EBITDA margin of 11.4%, compared to 13.7% in the previous year. Earnings per share (EPS) also saw a sharp decline, standing at ₹1.27 against ₹3.42 in Q3 FY23.
The company attributed the drop in profitability to rising raw material costs, which put pressure on overall margins. Additionally, finance costs rose to ₹85 crore due to increased borrowing expenses. On a positive note, Aarti Industries benefited from forward contracts used to hedge exports, which contributed to gains recognized under other comprehensive income.
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