Aarti Industries Limited

29%

e demerger of Pharma Segment from the Appointed date of 1st July, 2021. Our revenues increased by 29% Y-o-Y to Rs. 1,847 crore, with exports contributing over 50% of the total revenues.  EBITDA imp

Rs. 1,847 crore

Pharma Segment from the Appointed date of 1st July, 2021. Our revenues increased by 29% Y-o-Y to Rs. 1,847 crore, with exports contributing over 50% of the total revenues.  EBITDA improved by 5% to Rs. 267 cr

50%

July, 2021. Our revenues increased by 29% Y-o-Y to Rs. 1,847 crore, with exports contributing over 50% of the total revenues.  EBITDA improved by 5% to Rs. 267 crore; Normalising the impact of Short

5%

Rs. 1,847 crore, with exports contributing over 50% of the total revenues.  EBITDA improved by 5% to Rs. 267 crore; Normalising the impact of Shortfall fees in Q2 FY22 of Rs. 52 crore, the EBITDA

Rs. 267 crore

,847 crore, with exports contributing over 50% of the total revenues.  EBITDA improved by 5% to Rs. 267 crore; Normalising the impact of Shortfall fees in Q2 FY22 of Rs. 52 crore, the EBITDA growth in Q2 FY23

Rs. 52 crore

 EBITDA improved by 5% to Rs. 267 crore; Normalising the impact of Shortfall fees in Q2 FY22 of Rs. 52 crore, the EBITDA growth in Q2 FY23 is over 30%  Profit after tax stood at Rs. 124 crore Our revenue

30%

sing the impact of Shortfall fees in Q2 FY22 of Rs. 52 crore, the EBITDA growth in Q2 FY23 is over 30%  Profit after tax stood at Rs. 124 crore Our revenue momentum was fuelled by a stable demand t

Rs. 124 crore

in Q2 FY22 of Rs. 52 crore, the EBITDA growth in Q2 FY23 is over 30%  Profit after tax stood at Rs. 124 crore Our revenue momentum was fuelled by a stable demand trajectory for key products under the essent

rs,

ty levels were maintained during the period. Considering the slowdown in demand due to global factors, we have utilised this time to take up the maintenance works at our Jhagadia locations. As a result

Rs. 20 crore

er tax appears muted owing to higher finance costs due to negative FOREX mark-to-market impact of Rs. 20 crore and increase in depreciation in-line with new capacities added in the recent past. With the curren

Rs. 1,100

nce for H1 FY23 and the visibility that we have for H2 FY23, we expect our FY23 EBIDTA to be about Rs. 1,100 crs. Now, let me turn your attention to the production details for Q2 FY23. Production of Nitroch

20,276 MT

rn your attention to the production details for Q2 FY23. Production of Nitrochlorobenzene stood at 20,276 MT, while the same for hydrogenated came in at 2,558 TPM. For Nitro-Toluene, the production for Q2 FY

“Post this, we shall open the forum for question and answers where the management will be addressing to queries of the participants.”

“We have been expeditiously working to conclude this and expect the listing of Aarti Pharmalabs Limited to take place sometime in December 2022.”

“However, we expect this demand to recoup from Q4 of FY23.”

“We expect the elevated input cost scenario to soften in Q3.”

“With the current performance for H1 FY23 and the visibility that we have for H2 FY23, we expect our FY23 EBIDTA to be about Rs.”

“Project linked to the 1st long term contract is scaling up as expected, and we anticipate high utilisation levels of about 70% by next financial year.”

“The recently commissioned facility that houses the 2nd long term contract is getting utilised in a phased manner and we expect to generate the EBIDTA as guided by the contract terms and shared earlier.”

“Construction and other plant-related activities associated with the 3rd long term contract at Jhagadia is progressing well and we expect commissioning towards the end of this quarter.”

“Several other projects including brownfield expansion of NCB facility at Vapi are underway and will start getting operationalised progressively in next 4 quarters and thus will be contributing meaningfully from next financial year.”

“200 crs and is expected to come onstream in H1 FY25.”

Rajendra Gogri

51

Chetan Gandhi

18

Rashesh Gogri

13

Vishnu Kumar

11

Moderator

10

Rohan Gupta

10

Aditya Khetan

8

Abhijit Akella

6

Rohit Nagraj

5

Meet Vora

5

Nishid Solanki

Good day, and welcome to Aarti Industries Limited Q2 FY23 Earnings Conference Call. As a reminder, all participant lines will be in listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing “*” then “0” on your touch-tone phone. Please note, that this conference is being recorded. I now hand the conference over to Mr. Nishid Solanki from CDR India. Thank you, and over to you, sir. Thank you. Good afternoon, everyone, and thank you for joining us on Aarti Industries Q2 FY23 Earnings Conference Call. Today we are joined by senior members of the management team, including Mr. Rajendra Gogri, Chairman and Managing Director; Mr. Rashesh Gogri, Vice Chairman and Managing Director and Mr. Chetan Gandhi, Chief Financial Officer. We will commence the call with opening thoughts from Mr. Rajendra Gogri, who would take us through the performance, update on

Rajendra Gogri

Thank you, good afternoon, everyone and welcome to our Q2 FY23 earnings conference call. We have shared our results documents and I hope you had an opportunity to go through them. We have reported a resilient performance during the period under review which has come on the backdrop of continued inflation in key input costs both on raw materials and utilities, some slowdown in end-user industries linked to dyes & pigments, extreme foreign exchange volatility as well as uncertainties prevailing in the global market. Our performance was a culmination of solid expertise attained in managing multiple chemistry processes with superior execution track record. We adhered to our delivery commitments thereby winning customers trust and further them. Our knowledge and capabilities deepening our demonstrated in several product value-chains linked to Benzene and Toluene is relationships with best-in-class and we are replicating the same to create strong foundation across other adjacent chemistry va

Aditya Khetan

That concludes my initial thoughts and will now request the moderator to open the floor for the Q&A session. Thank you. Thank you very much. We will now begin the question-and-answer session. First question is from the line of Aditya Khetan of SMIFS Securities. Please go ahead. Yes. Thank you, sir for the opportunity. Sir, first question, if you can provide the break up on the top line, i.e., from our core business and from the custom synthesis business from contract one and two. Now we can provide the breakup of our revenue into core and into the custom synthesis part?

Chetan Gandhi

The revenue from the contract would be relatively lower. I don't have the numbers right now; maybe in single digit numbers. We’ll have to see the numbers and come back to you later on.

Rajendra Gogri

We can say that our value-added product, which we generally guide, 78% sales is coming from value added products.

Aditya Khetan

Okay. So, what I wanted to know, so this quarter-on-quarter growth of 5% into top line, how much was it from the core business and how much was it from the contract one and contract two?