Aarti Drugs Reports ₹514.54 Crore Revenue in Q3 FY 2024-25, Net Profit at ₹38.53 Crore

Mumbai, India – January 29, 2025​

Aarti Drugs Limited (NSE: AARTIDRUGS, BSE: 524348) has announced its financial results for the third quarter (Q3) and nine months (9M) ended December 31, 2024, reporting steady revenue growth, increased profitability, and an interim dividend declaration.

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Key Financial Highlights (Standalone Results, Q3 FY 2024-25 vs Q3 FY 2023-24)​

• Total Revenue: ₹514.54 crores, down 5.6% YoY from ₹543.09 crore.
• Net Profit (PAT): ₹38.53 crore, up 22.5% YoY from ₹31.39 crore.
• Profit Before Tax (PBT): ₹52.03 crore, up 18.7% YoY.
• Earnings Per Share (EPS): ₹4.22, compared to ₹3.33 in Q3 FY24.
• Interim Dividend: ₹1 per share (10%) declared, amounting to ₹9.12 crore.

Nine-Month Performance (9M FY 2024-25 vs 9M FY 2023-24)​

• Total Revenue: ₹1,567.70 crore, up 0.2% YoY from ₹1,564.91 crore.
• Net Profit: ₹105.74 crore, up 9.2% YoY from ₹96.94 crore.
• EBITDA Margin: 12.2%, showing stable operational efficiency.

✔ Aarti Drugs maintains profitability despite revenue fluctuations, supported by cost control and operational efficiencies.

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Business Growth & Strategic Highlights​

✔ Revenue Stability Amid Market Headwinds

• Steady demand for bulk drugs & specialty chemicals.
• Product mix optimization to sustain margins.

✔ Operational Efficiency & Cost Management

• Raw material costs optimized at ₹354.42 crore in Q3 FY25.
• Employee expenses at ₹24.07 crore, reflecting stable workforce management.

✔ Expansion in Specialty Chemicals & API Segments

• Increased capacity utilization in Tarapur & Gujarat units.
• Investment in high-margin API formulations.

✔ Buyback of Equity Shares Completed

• 6.65 lakh equity shares repurchased at ₹900 per share.
• Total buyback value: ₹59.85 crore, reducing outstanding equity base.

✔ Improved Financial Strength

• Net debt reduced, supporting long-term stability.
• Increased free cash flow to fund expansions.

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Segmental Performance​

✔ The Bulk Drugs segment continues to be the primary revenue driver, contributing 77% of total revenue.

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Financial Position & Future Expansion Plans​

✔ Scaling Production Facilities:

• Expansion of API manufacturing capacity in Gujarat & Maharashtra.
• Strengthening R&D for new product development.

✔ Focus on Export Growth:

• Targeting regulated markets like the US & Europe.
• Increased API sales in emerging economies.

✔ Strengthening Specialty Chemicals Division:

• Higher investments in niche, high-margin products.
• Strategic partnerships for raw material sourcing.

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Market Outlook & Future Growth Plans​

✔ Global Pharma API Demand Rising:

• Increased outsourcing by major pharmaceutical companies.
• Growing demand for specialty & high-purity APIs.

✔ Regulatory Approvals & New Market Entry:

• Expansion of USFDA & EU GMP-compliant product portfolio.
• New filings for API exports to North America & Europe.

✔ Sustained Profitability & Risk Management:

• Cost control measures ensure margin stability.
• Hedging strategies to mitigate raw material price volatility.

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Conclusion​

Aarti Drugs has delivered strong profitability in Q3 FY 2024-25, supported by cost optimization, stable demand, and efficient operations. With expansion in specialty chemicals, a focus on exports, and strategic cost management, the company is well-positioned for long-term growth in the pharmaceutical sector.