Aarti Drugs Q2 Results Review - Gross Margins At The Lowest Level: Axis Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Axis Securities Report.Aarti Drugs Ltd. reported Q2 FY23 results below to expectation despite strong topline growth. Aarti Drugs reported lowest gross margins 30% YoY in last four years due to price correction of high cost inventory that includes raw material like DCDA and Ammonia. Ebitda margins are 10.8% fell by 190 basis points due to low gross profitability and high fuel and power costs. The overall realisations have increased for top eight active pharma ingredient products along with moderation in inputs cost. Revenue Rs 688 crore grew by 18.7% YoY majorly driven by commencement of new capacities in the diabetic segment. Aarti Drugs' reported gross margins, ~30%, lowest in recent times despite fall in base chemical prices fell by 180 bps YoY. Reported profit after tax fell by 9% YoY due to low operating profitability and higher interest costs. Debt levels have increased as the company has increased capacity in diabetic and pain segment..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Aarti Drugs Q2 Results Review - Gross Margins At The Lowest Level: Axis Securities

The company reported lowest gross margins in last four years due to price correction of high cost inventory

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