Q2 2025 Aarti Drugs Ltd Earnings Call Transcript
Key Points
- Aarti Drugs Ltd (BOM:524348) reported an 8% quarter-on-quarter volume growth in the API segment, indicating a positive trend despite year-on-year challenges.
- The company anticipates an improvement in margins by the end of FY25, driven by better pricing and expected demand growth in export sales.
- A greenfield project in Sayakha, Gujarat, is expected to enhance capacity utilization and operational efficiency in the second half of the year.
- The production of salicylic acid has commenced, with plans to ramp up production significantly, which could contribute positively to future revenues.
- Aarti Drugs Ltd completed a buyback of 665,000 equity shares, reflecting a commitment to shareholder value.
- The company experienced a year-on-year drop in revenues and profitability due to lower realizations and weak market demand in the API business.
- There was a 7-8% year-on-year decline in API segment prices, impacting overall financial performance.
- The company faced teething issues in ramping up salicylic acid production, affecting immediate output and profitability.
- The current utilization of the API segment is around 78%, indicating underutilization of existing capacity.
- Aarti Drugs Ltd revised its potential revenue guidance downwards due to current pricing levels, reflecting market challenges.
Ladies and gentlemen, good day, and welcome to Aarti Drugs Limited Q2 FY25 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict.
(Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Adhish Patil, CFO and CEO. Thank you, and over to you, sir.
Thank you. Good morning and a warm welcome to everyone present on the conference call of Aarti Drugs Limited.
On this call, we are joined by Mr. Harshit Savla, Joint Managing Director; Mr. Harit Shah, whole-time Director of Aarti Drugs Limited; and Mr. Vishwa Savla, he won't be in the call; and SGA, our Investor Relations Advisor. I hope everyone had an opportunity to go through the financial
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