Aarti Industries Limited posted net profit of Rs. 772.49 crores for the quarter ended December 31, 2021 as against net profit of Rs. 176.11 crores for the period ended September 30, 2021. The company posted net profit of Rs.165.27 crores for the period ended December 31, 2020.

During the quarter, Aarti Industries has recognized Rs. 631.25 crore receivable as accrual of termination fees payable by a client for cancellation of a long term supply contract. As a result, EBIDTA includes Rs 611 crores (net of expenses/currency m2m in relation to the termination fees) during the quarter.

The company reported total income of Rs. 2376.04 crores during the period ended December 31, 2021 as compared to Rs. 1552.10 crores during the period ended September 30, 2021. It reported total income of Rs.1187.21 crores during the period ended December 31, 2020.

The revenue growth is backed by about 85% utilization across most of the operationalized facilities. Moreover, return of demand from established markets also driven the improved margins.

Commenting on the performance for Q3 FY22, Rajendra Gogri, CMD, Aarti Industries Limited said: “During Q3, our core EBITDA of Rs. 356 crore is once again the highest in our operating history, demonstrating the ability of the business to maintain margins by passing on to customers the substantial input cost inflation experienced during the reported period. Our current operating trajectory also suggests resumption of growth momentum in FY22 following a period of slower expansion in the previous two years due to the impact of a tough macro environment.

We remain focused on addressing the large opportunity arising from import substitution and supply chain diversification by global majors. Our established position as a partner of choice across an ever-increasing number of engagements is driving scale. We are also investing in product diversification, capacity expansion/upgradation in both speciality chemicals and pharmaceuticals as well as building out internal capabilities on quality, safety, health and environment and an expanded R&D pipeline.

We believe this augmented organizational framework positions us strongly to capture strategic growth opportunities. This will be supported by the expanded pipeline of operationalized projects that are currently underway, providing clear visibility to the business over the next several years.

As India emerges as an increasingly significant global chemicals supply destination, backed by a supportive regulatory framework instituted by the government, our capex commitments driven by a wellcapitalized balance sheet, will allow the pursuit of aggressive growth in line with our business blueprint.

Our plan to create individually focused businesses in our two core verticals will further enhance value for all our stakeholders.”

For the 9 months ended December 31, 2021, Aarti Industries has reported total income of Rs.5244.95 croresas compared to Rs.3297.44 crores during the 9 months period ended December 31, 2020.

The company has posted net profit of Rs.1113.46 crores for the 9 months period ended December 31, 2021 as against net profit of Rs.387.37 crores for the 9 months period ended December 31, 2020.

The company is looking at capex for FY 22-24 in the tune of Rs 4,500-5,000 crore.