Aarti Industries Ltd
Aarti Industries is a leading Indian manufacturer of Speciality Chemicals and Pharmaceuticals with a global footprint. Chemicals manufactured by Aarti are used in the downstream manufacture of pharmaceuticals, agrochemicals, polymers, additives, surfactants, pigments, dyes, etc. #
Specialty Chemicals Segment (83% of revenues)#
Under this segment, the Company has integrated operations across the benzene, sulphur and toluene product chains, and is ranked among the top three players globally for the manufacture of Nitro Chloro Benzenes (NCB) and Di-chloro Benzenes (DCB). The Company is also the only manufacturer of nitro fluoro aromatics using the Halex process and the only manufacturer of Phlyenediamines (PDA) value chain in India. Most of its speciality chemical products are primarily along the benzene-based value chain. Other chemicals such as sulphuric acid and its derivatives, single super phosphate, Toulene-based derivatives, calcium chloride granules, fuel additives and phthalates are also part of its manufacturing portfolio. #
Pharmaceuticals Segment (17% of revenues)
The company use its world-class expertise and modern manufacturing infrastructure to develop APIs, intermediates and xanthine derivatives for the pharmaceutical and food/beverages industry. It also has its own backward integrated intermediaries for most of the APIs that are manufactured. # API (Advanced Pharmaceutical Equipment) accounts for 61% of revenues of the segment and the Xanthine derivatives account for the rest 39% of revenues. #
Global Presence
The company has a global presence with exports around the world. Domestic (Indian) market accounts for 60% of total revenues, followed by Europe (14%), North America (9%), Japan (4%), China (3%) and rest of world accounts for the rest 10% of revenues. #
Client Base
The company has a client base of 700+ domestic clients and 400+ global clients. # Its clients belong to many industries viz. Pigments & Paints, Polymers, Agro intermediaries, Pharmaceuticals and others.
Its clients include Clariant, Sunchemical, Huntsman, Sudarshan, BASF, Toray, Bayer, UPL, Coromandel, Cipla, Sun Pharma, Lupin, Zydus, Dr. Reddy's, 3M, Dabur & many more. #
Limited Exposure
With a total of 200+ products in production #, the company has a diversified exposure to many industries. It has a 25-30% exposure in agro-chemicals, 25-30% in pharmaceuticals, 15-20% in polymers & additives, 15-20% in Dyes, Pigments and printing inks & 10-20% in FMCG, fuel additives and others. #
Manufacturing Facilities
The company has 13 manufacturing plants for its specialty chemicals division & 5 plants for its pharmaceuticals division. In total, it has 18 manufacturing facilities which are all located in western India with close proximity of ports for easy export. # Its manufacturing units are located in the states of Gujarat and Maharashtra. #
Out of 5 pharma plants, 2 plants are USFDA approved for manufacturing which makes it a preferred supplier of drugs. #
It also owns 6 co-gen power plants & a solar capacity of ~700 KW. #
Research & Development Capabilities
The company owns 4 R&D centres in India with a dedicated pool of 300+ engineers and scientists for developing customized products. # It operationalized Aarti Research & Technology Centre, its new R&D facility in Navi Mumbai in FY20. #
- Market Cap ₹ 21,518 Cr.
- Current Price ₹ 1,235
- High / Low ₹ 1,366 / 662
- Stock P/E 43.2
- Book Value ₹ 184
- Dividend Yield 0.28 %
- ROCE 15.7 %
- ROE 18.9 %
- Face Value ₹ 5.00
Pros
- Company has delivered good profit growth of 21.41% CAGR over last 5 years
Cons
- The company has delivered a poor sales growth of 7.69% over past five years.
- Company might be capitalizing the interest cost
- Promoter holding has decreased over last 3 years: -6.29%
Quarterly Results
Consolidated Figures in Rs. Crores / View Standalone
Jun 2018 | Sep 2018 | Dec 2018 | Mar 2019 | Jun 2019 | Sep 2019 | Dec 2019 | Mar 2020 | Jun 2020 | Sep 2020 | Dec 2020 | |
---|---|---|---|---|---|---|---|---|---|---|---|
1,133 | 1,326 | 1,276 | 1,141 | 1,135 | 988 | 1,084 | 1,076 | 937 | 1,173 | 1,187 | |
932 | 1,063 | 1,023 | 890 | 885 | 734 | 829 | 857 | 755 | 918 | 902 | |
Operating Profit | 200 | 263 | 253 | 251 | 250 | 254 | 254 | 219 | 182 | 254 | 285 |
OPM % | 18% | 20% | 20% | 22% | 22% | 26% | 23% | 20% | 19% | 22% | 24% |
Other Income | 0 | 1 | 4 | 0 | 2 | 6 | 0 | 0 | 0 | 0 | 0 |
Interest | 47 | 52 | 42 | 44 | 31 | 31 | 29 | 34 | 25 | 22 | 17 |
Depreciation | 41 | 42 | 44 | 46 | 43 | 46 | 47 | 49 | 52 | 55 | 59 |
Profit before tax | 113 | 171 | 171 | 161 | 178 | 183 | 179 | 136 | 105 | 177 | 209 |
Tax % | 18% | 19% | 19% | 21% | 20% | 17% | 20% | 19% | 21% | 19% | 19% |
Net Profit | 90 | 134 | 134 | 125 | 138 | 148 | 140 | 110 | 82 | 140 | 165 |
EPS in Rs | 5.54 | 8.26 | 8.22 | 7.23 | 7.97 | 8.47 | 8.03 | 6.33 | 4.70 | 8.05 | 9.49 |
Notes | Notes | Notes | Notes | Notes | Notes | Notes | Notes | Notes | Notes | Notes |
Profit & Loss
Consolidated Figures in Rs. Crores / View Standalone
Mar 2009 | Mar 2010 | Mar 2011 | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | TTM | |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
1,437 | 1,289 | 1,449 | 1,667 | 2,086 | 2,619 | 2,890 | 3,006 | 3,163 | 3,806 | 4,168 | 4,186 | 4,373 | |
1,191 | 1,086 | 1,251 | 1,417 | 1,725 | 2,217 | 2,424 | 2,434 | 2,509 | 3,107 | 3,202 | 3,209 | 3,433 | |
Operating Profit | 246 | 203 | 198 | 249 | 361 | 401 | 466 | 572 | 654 | 699 | 965 | 977 | 940 |
OPM % | 17% | 16% | 14% | 15% | 17% | 15% | 16% | 19% | 21% | 18% | 23% | 23% | 22% |
Other Income | 2 | 3 | 4 | 4 | 4 | 11 | 9 | 6 | 2 | 8 | 2 | 9 | 1 |
Interest | 90 | 52 | 56 | 72 | 95 | 118 | 138 | 117 | 117 | 132 | 183 | 125 | 99 |
Depreciation | 40 | 47 | 50 | 55 | 83 | 89 | 82 | 98 | 123 | 146 | 163 | 185 | 215 |
Profit before tax | 119 | 107 | 96 | 126 | 187 | 206 | 255 | 363 | 416 | 429 | 622 | 676 | 628 |
Tax % | 27% | 36% | 30% | 29% | 29% | 26% | 24% | 26% | 21% | 19% | 19% | 19% | |
Net Profit | 87 | 68 | 81 | 103 | 134 | 162 | 206 | 257 | 316 | 333 | 492 | 536 | 498 |
EPS in Rs | 4.46 | 5.31 | 6.53 | 8.50 | 9.17 | 11.62 | 15.42 | 19.23 | 20.48 | 28.37 | 30.77 | 28.57 | |
Dividend Payout % | 25% | 28% | 24% | 27% | 24% | 25% | 24% | 28% | 3% | 2% | 19% | 11% |
Compounded Sales Growth | |
---|---|
10 Years: | 13% |
5 Years: | 8% |
3 Years: | 10% |
TTM: | 1% |
Compounded Profit Growth | |
---|---|
10 Years: | 23% |
5 Years: | 21% |
3 Years: | 19% |
TTM: | -10% |
Stock Price CAGR | |
---|---|
10 Years: | 48% |
5 Years: | 43% |
3 Years: | 29% |
1 Year: | 27% |
Return on Equity | |
---|---|
10 Years: | 21% |
5 Years: | 22% |
3 Years: | 21% |
Last Year: | 19% |
Balance Sheet
Consolidated Figures in Rs. Crores / View Standalone
Mar 2009 | Mar 2010 | Mar 2011 | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Sep 2020 | |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
36 | 38 | 38 | 40 | 40 | 44 | 44 | 42 | 41 | 41 | 43 | 87 | 87 | |
Reserves | 337 | 416 | 467 | 551 | 712 | 826 | 972 | 1,096 | 1,321 | 1,538 | 2,587 | 2,892 | 3,123 |
Borrowings | 484 | 438 | 528 | 628 | 849 | 1,039 | 1,202 | 1,292 | 1,564 | 2,083 | 2,401 | 2,098 | 2,174 |
227 | 322 | 361 | 442 | 576 | 760 | 719 | 538 | 573 | 730 | 826 | 1,256 | 1,512 | |
Total Liabilities | 1,084 | 1,215 | 1,395 | 1,660 | 2,176 | 2,670 | 2,938 | 2,966 | 3,499 | 4,391 | 5,858 | 6,332 | 6,896 |
392 | 407 | 412 | 443 | 674 | 826 | 967 | 1,246 | 1,697 | 1,998 | 2,147 | 2,468 | 2,757 | |
CWIP | 9 | 9 | 18 | 54 | 69 | 117 | 193 | 313 | 270 | 436 | 795 | 1,418 | 1,550 |
Investments | 41 | 54 | 76 | 94 | 95 | 117 | 139 | 41 | 47 | 47 | 33 | 37 | 39 |
643 | 744 | 888 | 1,068 | 1,338 | 1,609 | 1,639 | 1,366 | 1,486 | 1,910 | 2,884 | 2,409 | 2,549 | |
Total Assets | 1,084 | 1,215 | 1,395 | 1,660 | 2,176 | 2,670 | 2,938 | 2,966 | 3,499 | 4,391 | 5,858 | 6,332 | 6,896 |
Cash Flows
Consolidated Figures in Rs. Crores / View Standalone
Mar 2009 | Mar 2010 | Mar 2011 | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | |
---|---|---|---|---|---|---|---|---|---|---|---|---|
164 | 191 | 61 | 121 | 230 | 315 | 340 | 574 | 470 | 335 | 736 | 1,102 | |
-78 | -76 | -82 | -134 | -229 | -291 | -298 | -452 | -529 | -610 | -797 | -1,124 | |
-88 | -111 | 22 | 11 | 1 | -22 | -23 | -128 | 58 | 279 | 833 | -535 | |
Net Cash Flow | -2 | 4 | 1 | -2 | 2 | 2 | 19 | -7 | -0 | 4 | 772 | -557 |
Ratios
Consolidated Figures in Rs. Crores / View Standalone
Mar 2009 | Mar 2010 | Mar 2011 | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | |
---|---|---|---|---|---|---|---|---|---|---|---|---|
ROCE % | 26% | 18% | 16% | 17% | 20% | 18% | 19% | 21% | 20% | 17% | 18% | 16% |
Debtor Days | 68 | 73 | 84 | 89 | 75 | 62 | 55 | 64 | 61 | 63 | 68 | 66 |
Inventory Turnover | 4.68 | 3.56 | 3.45 | 3.69 | 3.24 | 3.13 | 3.16 | 3.39 | 3.09 | 3.06 | 2.58 | 2.34 |
Documents
Add documentRecent announcements
- Compliances-Reg. 39 (3) - Details of Loss of Certificate / Duplicate Certificate 17 Feb
- Compliances-Reg. 39 (3) - Details of Loss of Certificate / Duplicate Certificate 6 Feb
- Compliances-Reg. 39 (3) - Details of Loss of Certificate / Duplicate Certificate 4 Feb
- Announcement under Regulation 30 (LODR)-Investor Presentation 29 Jan
- Outcome Of The Board Meeting 28 Jan
View all
Annual reports
- Financial Year 2020 from bse
- Financial Year 2019 from bse
- Financial Year 2018 from bse
- Financial Year 2017 from bse
- Financial Year 2016 from bse
- Financial Year 2015 from bse
- Financial Year 2014 from bse
- Financial Year 2013 from bse
- Financial Year 2012 from bse
- Financial Year 2011 from bse
- Financial Year 2011 from nse
- Financial Year 2010 from bse
- Financial Year 2010 from nse