Aarti Industries falls 3% on weak Q1 numbers

Shares of Aarti Industries Limited fell 3 percent to Rs 458 at 9:20 am on August 9 after the company’s net profit decline nearly 50 percent to Rs 70 crore in the first quarter.

The figures also missed analyst estimates of net profit being around Rs 75 crore.

Follow our market blog for all the live action

The chemical manufacturers revenue from operations also plunged 12.1 percent to Rs 1,414 crore. Aarti’s revenue in the corresponding quarter of the last fiscal was Rs 1,610 crore.

The earnings before interest, tax, depreciation and amortization (EBITDA) also declined 29 percent to Rs 201 crore year-on-year, missing estimates of about Rs 224 crore.

As per the company’s investor presentation, the company has highlighted four major projects set to be completed by September 2024. “NCB capacity expansion at Vapi specialty chemicals Blocks at various locations, expansion cum asset upgradation for acid unit at Vapi, expansion of ethylation and NT capacities, and expansion,
asset restoration and sustainability initiatives will all be completed by September, the management of the company said.

In the fourth quarter of the previous fiscal, the chemical company’s management highlighted weak demand scenarios in key markets and discretionary segments. Furthermore, product off take linked to the textiles industry such as dyes and pigments remains subdued.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.