{"id":134882,"date":"2022-08-12T01:46:00","date_gmt":"2022-08-12T05:46:00","guid":{"rendered":"https:\/\/44.250.171.167\/?p=134882"},"modified":"2022-10-19T01:51:49","modified_gmt":"2022-10-19T05:51:49","slug":"aarti-industries-ltd-q1-fy23-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/aarti-industries-ltd-q1-fy23-earnings-conference-call-insights\/","title":{"rendered":"Aarti Industries Ltd Q1 FY23 Earnings Conference Call Insights"},"content":{"rendered":"<p><iframe loading=\"lazy\" title=\"AARTIIND Stock | Aarti Industries Ltd Q1 FY23 Earnings Concall\" width=\"500\" height=\"375\" src=\"https:\/\/www.youtube.com\/embed\/CUmhEBZpLC0?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p><strong>Key highlights from Aarti Industries Ltd (<a href=\"https:\/\/44.250.171.167\/symbol\/AARTIIND\/\">AARTIIND<\/a>) Q1 FY23 Earnings Concall<\/strong><\/p>\n<p><strong>Management Update:<\/strong><\/p>\n<ul>\n<li>[00:05:18] AARTIIND said it has started seeing volume ramp up from the facility linked to first long-term contract and expect to reach a utilization level of 70-80% by next year.<\/li>\n<\/ul>\n<ul>\n<li>[00:05:59] AARTIIND said that since a large part of fixed cost will be built in by FY23, the company doesn\u2019t expect major increase in fixed cost in FY24. Additionally, volume ramp-up as expected in FY24 will significantly lead to increase in EBITDA.<\/li>\n<\/ul>\n<p><strong>Q&amp;A Highlights:<\/strong><\/p>\n<ul>\n<li>[00:09:46] Surya Narayan of PhillipCapital asked about the ramp up level seen in the second multiyear supply contract. Rajendra Gogri MD replied that first year will be around 40%, 50% kind of utilization level. But overall, the way it is structured, the top line may be less, but the EBITDA level won\u2019t be impacted linked to the capacity utilization.<\/li>\n<\/ul>\n<ul>\n<li>[00:11:41] Surya Narayan from PhillipCapital enquired about the reason for sharp jump in export shares. Rajendra Gogri MD answered that the second contract is for 100% export, which leads to increase in export. In general, AARTIIND is seeing export in the range of 40-60% to remain.<\/li>\n<\/ul>\n<ul>\n<li>[00:16:23] Surya Narayan with PhillipCapital also asked about pharma segment separation and how will it impact the long term outlook. Rajendra Gogri MD said that pharma itself will grow in a sizable manner in addition to chemicals.<\/li>\n<\/ul>\n<ul>\n<li>[00:18:36] Rohan Gupta of Edelweiss asked that considering decent EBITDA growth in a challenging environment in the current quarter, if the guidance for FY23 remains intact. Rajendra Gogri MD answered that the company won\u2019t like to change the guidance at this level. However in 2Q23, AARTIIND will look at overall situation and see if guidance needs to be changed.<\/li>\n<\/ul>\n<ul>\n<li>[00:22:30] Rohan Gupta of Edelweiss enquired about demand challenges and a weak environment, if it\u2019s affecting AARTIIND or in general the larger economy. Rajendra Gogri MD clarified that the company\u2019s main business dyestuff is in domestic, and export is more in engineering, polymers, agro and pharma side. So AARTIIND is not seeing much impact on the demand side.<\/li>\n<\/ul>\n<ul>\n<li>[00:24:16] Aditya Khetan from SMIFS Institutional enquired about slowdown in textile and FMCG impacting AARTIIND. Rajendra Gogri MD said normally sale to this segment is in the range of 10-20%. AARTIIND continuously try to rejuggle the product portfolio if one segment is down.<\/li>\n<\/ul>\n<ul>\n<li>[00:25:34] Aditya Khetan with SMIFS Institutional asked about pharm intermediate, what kind of intermediate AARTIIND is manufacturing in Dombivli plant. Rashesh Gogri VC answered that Dombivli plant is manufacturing Pharma intermediates as regulatory starting materials required for APIs. And AARTIIND is also supporting the generic players in India and abroad from that site.<\/li>\n<\/ul>\n<ul>\n<li>[00:28:08] Abhijit Akella of Kotak Securities asked about the volume growth in 1Q23 of the total revenue growth. Rashesh Gogri VC said 25% plus has come from raw material side and 15-20% from volume growth.<\/li>\n<\/ul>\n<ul>\n<li>[00:28:41] Abhijit Akella of Kotak Securities asked about capacity of first long term contract for 2,5-dichlorophenol. Rajendra Gogri MD answered that the capacity was set up for about 9,600 tons.<\/li>\n<\/ul>\n<ul>\n<li>[00:31:18] \u00a0Rohit Nagraj from Centrum Broking enquired about potential revenues from the new contracts in FY24, if an incremental revenue of INR800-1,000 crores can be expected from the three contracts. Rajendra Gogri MD answered that that kind of a number can be expected.<\/li>\n<\/ul>\n<ul>\n<li>[00:34:46] Trilok Agarwal with Dymon Asia asked that on the slowdown if it\u2019s similar to the one seen in the last 3-4 cycles or it\u2019s different this time. Rajendra Gogri MD replied that in dyestuff sector there&#8217;s a more significant slowdown in Indian market. Hopefully, things should start getting better in the next few months.<\/li>\n<\/ul>\n<ul>\n<li>[00:35:45] Akul Broachwala of IIFL Securities asked about gross debt trend going forward and the peak debt-to-equity ratio. Rajendra Gogri MD answered that debt-to-equity ratio has to be seen how the entire nitric acid scenario pans out. If a substantial investment is needed then debt will move higher. In general, the target will be around 0.7 to 0.9, on the higher side.<\/li>\n<\/ul>\n<ul>\n<li>[00:36:54] Akul Broachwala of IIFL Securities enquired about the capex expectation for nitric acid. \u00a0Rajendra Gogri MD commented that currently it\u2019s around 150-200 ton per concentration plant. But for a weak nitric acid plant, it can be additional INR500 crore plus.<\/li>\n<\/ul>\n<ul>\n<li>[00:44:08] Nitin Agarwal with DAM Capital asked how is contract one shaping in terms of supplies, to whom is AARTIIND supplying to and its visibility. Rajendra Gogri MD said AARTIIND is supplying to various domestic and export customers. Also, AARTIIND added that qualification quantities have been given in 1Q23 and a ramp up will be seen in 2H23.<\/li>\n<\/ul>\n<ul>\n<li>[00:52:48] Pankaj Singh from Trustline asked about the expected capacity utilization levels for FY23 and FY24. Rajendra Gogri MD replied that capacity utilization will be different for different plants. In Nitrochlorobenzene, virtually, AARTIIND is running at almost 100% capacity. And new projects are on the ram up.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Aarti Industries Ltd (AARTIIND) Q1 FY23 Earnings Concall Management Update: [00:05:18] AARTIIND said it has started seeing volume ramp up from the facility linked to first long-term contract and expect to reach a utilization level of 70-80% by next year. [00:05:59] AARTIIND said that since a large part of fixed cost will [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":125416,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"Aarti Industries Ltd Q1 FY23 Earnings Conference Call Insights #AARTIIND #Q1 #FY23 #Earnings #Stocks","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,5753],"tags":[10169,1115,9019],"class_list":["post-134882","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-industrials","tag-earnings","tag-pharmaceuticals","tag-specialty-chemicals"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":145687,"url":"https:\/\/alphastreet.com\/india\/aarti-industries-ltd-q4-fy23-earnings-conference-call-insights\/","url_meta":{"origin":134882,"position":0},"title":"Aarti Industries Ltd Q4 FY23 Earnings Conference Call Insights","author":"Praveen","date":"May 10, 2023","format":false,"excerpt":"Key highlights from Aarti Industries Ltd (AARTIIND) Q4 FY23 Earnings Concall Management Update: [00:08:20] AARTIIND said its EBITDA growth guidance for FY24 and FY25 remains unchanged at 25% CAGR. Q&A Highlights: [00:09:10] Rohit Nagraj from Centrum Broking enquired about the commercialization of two specialty chemical complexes at Jhagadia. Rajendra Gogri\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":137008,"url":"https:\/\/alphastreet.com\/india\/aarti-industries-ltd-q2-fy23-earnings-conference-call-insights\/","url_meta":{"origin":134882,"position":1},"title":"Aarti Industries Ltd Q2 FY23 Earnings Conference Call Insights","author":"Praveen","date":"November 21, 2022","format":false,"excerpt":"Key highlights from Aarti Industries Ltd (AARTIIND) Q2 FY23 Earnings Concall Management Update: [00:03:50] AARTIIND said it is seeing slower demand for products associated with end-user industries of dyes, pigment, etc. However, the company expects demand to recoup from 4Q23. Q&A Highlights: [00:10:50] Aditya Khetan of SMIFS Institutional asked about\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":140420,"url":"https:\/\/alphastreet.com\/india\/aarti-industries-ltd-q3-fy23-earnings-conference-call-insights\/","url_meta":{"origin":134882,"position":2},"title":"Aarti Industries Ltd Q3 FY23 Earnings Conference Call Insights","author":"Praveen","date":"February 7, 2023","format":false,"excerpt":"Key highlights from Aarti Industries Ltd (AARTIIND) Q3 FY23 Earnings Concall Management Update: [00:04:16] AARTIIND said demand for textile products was impacted in the quarter, but added that it expects recovery in 1H24. Q&A Highlights: [00:09:24] Rohit Nagraj from Centrum Broking asked about QonQ GM being flat considering value added\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":145468,"url":"https:\/\/alphastreet.com\/india\/earnings-aarti-industries-limited-nse-aartiind-q4fy23-results-out-total-income-fell-15-yoy\/","url_meta":{"origin":134882,"position":3},"title":"Earnings | Aarti Industries Limited (NSE: AARTIIND: Q4FY23 Results Out; Total Income fell 15% YoY.","author":"Divyansh_Kasana","date":"May 9, 2023","format":false,"excerpt":"Aarti Industries is a leading Indian chemical company that produces specialty chemicals and intermediates for a wide range of industries such as pharmaceuticals, agrochemicals, and personal care. The company has a global presence and operates manufacturing facilities in India, Europe, and the USA. Aarti Industries Limited reported Total Income for\u2026","rel":"","context":"In &quot;Earnings&quot;","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/4b0b185d-fd09-4e7e-947d-ef141089055f-28.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/4b0b185d-fd09-4e7e-947d-ef141089055f-28.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/4b0b185d-fd09-4e7e-947d-ef141089055f-28.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/4b0b185d-fd09-4e7e-947d-ef141089055f-28.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/4b0b185d-fd09-4e7e-947d-ef141089055f-28.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/4b0b185d-fd09-4e7e-947d-ef141089055f-28.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":145385,"url":"https:\/\/alphastreet.com\/india\/alphagraph-aarti-industries-ltdnse-aartiindq4-fy23-results-outtotal-income-rises-15-yoy\/","url_meta":{"origin":134882,"position":4},"title":"Alphagraph | Aarti Industries Ltd(NSE: AARTIIND)|Q4 FY23 Results Out|Total Income rises 15% YoY.","author":"Divyansh_Kasana","date":"May 8, 2023","format":false,"excerpt":"Aarti Industries is a leading Indian chemical company that produces specialty chemicals and intermediates for a wide range of industries such as pharmaceuticals, agrochemicals, and personal care. The company has a global presence and operates manufacturing facilities in India, Europe, and the USA.","rel":"","context":"In &quot;Earnings&quot;","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/e6c6654d-1580-49d6-ada3-b549f4d939e2.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/e6c6654d-1580-49d6-ada3-b549f4d939e2.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/e6c6654d-1580-49d6-ada3-b549f4d939e2.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/e6c6654d-1580-49d6-ada3-b549f4d939e2.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/e6c6654d-1580-49d6-ada3-b549f4d939e2.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/e6c6654d-1580-49d6-ada3-b549f4d939e2.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":140880,"url":"https:\/\/alphastreet.com\/india\/aarti-industries-ltd-nse-aartiind-q3-fy23-results-out-total-income-fell-15-yoy\/","url_meta":{"origin":134882,"position":5},"title":"AARTI INDUSTRIES LTD. (NSE: AARTIIND): Q3 FY23 Results Out; Total Income fell 15% YoY","author":"Divyansh_Kasana","date":"February 10, 2023","format":false,"excerpt":"Aarti Industries ltd. (NSE:AARTIIND), a specialty chemical firm, recently announced its Q3FY23 financial results. The company reported a revenue of Rs 1,854 crore, an increase of 12% YoY. The EBITDA for the quarter was Rs 289 crore, which was a 26% increase YoY. The PAT for the quarter was Rs\u2026","rel":"","context":"In &quot;Earnings&quot;","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/134882","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=134882"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/134882\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/125416"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=134882"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=134882"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=134882"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}