{"id":140420,"date":"2023-02-07T09:38:56","date_gmt":"2023-02-07T14:38:56","guid":{"rendered":"https:\/\/44.250.171.167\/?p=140420"},"modified":"2023-02-07T09:38:57","modified_gmt":"2023-02-07T14:38:57","slug":"aarti-industries-ltd-q3-fy23-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/aarti-industries-ltd-q3-fy23-earnings-conference-call-insights\/","title":{"rendered":"Aarti Industries Ltd Q3 FY23 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from Aarti Industries Ltd (<a href=\"https:\/\/44.250.171.167\/symbol\/AARTIIND\/\">AARTIIND<\/a>) Q3 FY23 Earnings Concall<\/strong><\/p>\n<p><strong>Management Update:<\/strong><\/p>\n<ul>\n<li>[00:04:16] AARTIIND said demand for textile products was impacted in the quarter, but added that it expects recovery in 1H24.<\/li>\n<\/ul>\n<p><strong>Q&amp;A Highlights:<\/strong><\/p>\n<ul>\n<li>[00:09:24] Rohit Nagraj from Centrum Broking asked about QonQ GM being flat considering value added products contribution being higher. Rajendra Gogri MD replied that it\u2019s due to discretionary being pressured on the dye side, while other sides didn\u2019t see much impact in 3Q23.<\/li>\n<\/ul>\n<ul>\n<li>[00:12:03] Vivek Rajamani of Morgan Stanley asked about the demand trends in key end segments. Rajendra Gogri MD replied that the textile industry is facing a slowdown due to the global demand slow down caused by high inflation. Also now, recessionary trends are seen in other segments such as the auto industry.<\/li>\n<\/ul>\n<ul>\n<li>[00:13:13] Vivek Rajamani of Morgan Stanley enquired how the company\u2019s revenue exposure will change once all ongoing projects are commissioned. \u00a0Rajendra Gogri MD answered that segment exposure will be around 50:50 with current ongoing expansion. \u00a0However, going forward there will be some increase in pharma and agro during FY25.<\/li>\n<\/ul>\n<ul>\n<li>[00:14:07] Niteen Dharmawat from Aurum asked about the pending capex, including maintenance capex. Rajendra Gogri MD answered that in FY23 AARTIIND spent around INR840 crores and expected spend is INR1,100-1,200 crores. And for next two years, it\u2019s INR3,000 crores.<\/li>\n<\/ul>\n<ul>\n<li>[00:14:40] Niteen Dharmawat from Aurum enquired about the revenue target at current prices. Rajendra Gogri MD answered that the company is targeting about INR1,700 crore EBITDA by FY25.<\/li>\n<\/ul>\n<ul>\n<li>[00:15:27] Archit Joshi with B&amp;K Securities asked about the volume growth in base business if it\u2019s sustainable. Rajendra Gogri MD replied that the company expects the volume growth to happen. However, some products might have to put into non-regular markets.<\/li>\n<\/ul>\n<ul>\n<li>[00:18:41] Sagar Sanghavi from JP Morgan asked if the FY27 guidance of bottom line increase of 3-4x still remains. Rajendra Gogri MD answered that long term guidance the company should be able to achieve.<\/li>\n<\/ul>\n<ul>\n<li>[00:20:56] Surya Narayan Patra of PhillipCapital enquired about correction in crude price and freight cost, if it\u2019s already seen in revenue and product prices. Rajendra Gogri MD answered that for domestic it gets passed on a month to month basis. And export it gets passed with a quarterly lag.<\/li>\n<\/ul>\n<ul>\n<li>[00:27:32] Surya Narayan Patra with PhillipCapital asked about the cumulative R&amp;D spend for a year as a percentage to sales. Rajendra Gogri MD said that it will be about 1%.<\/li>\n<\/ul>\n<ul>\n<li>[00:31:22] Abhijit Akella from Kotak Securities asked about the capex incurred on chlorotoluenes and asset upgradation initiatives. Rajendra Gogri MD answered that chlorotoluenes spending will start from FY24. The major expense till now has been on the existing product lines.<\/li>\n<\/ul>\n<ul>\n<li>[00:34:57] Rohan Gupta from Nuvama asked about any upward revision of EBITDA guidance for FY23. Rajendra Gogri MD said that due to global slowdown, the company is not revising guidance. Overall AARTIIND will try to reshuffle the products to meet the guidelines of about INR1,100 crores.<\/li>\n<\/ul>\n<ul>\n<li>[00:40:34] Rohan Gupta from Nuvama enquired about the debt level at year end. Rajendra Gogri MD replied that debt level should be a bit lower than what was on the peak part, about INR2,600-2,700 crore. Some part of it is due to reduction on commodity prices and freight cost resulting in reduction of working capital.<\/li>\n<\/ul>\n<ul>\n<li>[00:42:49] Ankur Periwal at Axis Capital asked about volume growth from a 3-5 year perspective. Rajendra Gogri MD said that the company is expecting 40-50% volume growth.<\/li>\n<\/ul>\n<ul>\n<li>[00:52:35] Nitin Agarwal of DAM Capital asked about the growth contribution from current products and newer products. Rajendra Gogri MD answered that until FY25 the contribution will be more from the current product line. In FY25, the new product line will be the first year, so there won\u2019t be any significant EBITDA coming from new products.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>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&amp;A Highlights: [00:09:24] Rohit Nagraj from Centrum Broking asked about QonQ GM being flat considering value added products contribution being higher. Rajendra [&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 Q3 FY23 Earnings Conference Call Insights #AARTIIND #Q3 #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":[9825,392,5747],"tags":[10169,1115,9019],"class_list":["post-140420","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-healthcare-stocks","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":137008,"url":"https:\/\/alphastreet.com\/india\/aarti-industries-ltd-q2-fy23-earnings-conference-call-insights\/","url_meta":{"origin":140420,"position":0},"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":134882,"url":"https:\/\/alphastreet.com\/india\/aarti-industries-ltd-q1-fy23-earnings-conference-call-insights\/","url_meta":{"origin":140420,"position":1},"title":"Aarti Industries Ltd Q1 FY23 Earnings Conference Call Insights","author":"Praveen","date":"August 12, 2022","format":false,"excerpt":"https:\/\/youtu.be\/CUmhEBZpLC0 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\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":145687,"url":"https:\/\/alphastreet.com\/india\/aarti-industries-ltd-q4-fy23-earnings-conference-call-insights\/","url_meta":{"origin":140420,"position":2},"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":140880,"url":"https:\/\/alphastreet.com\/india\/aarti-industries-ltd-nse-aartiind-q3-fy23-results-out-total-income-fell-15-yoy\/","url_meta":{"origin":140420,"position":3},"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":[]},{"id":140276,"url":"https:\/\/alphastreet.com\/india\/aarti-industries-ltd-aartiind-q3-fy23-earnings-concall-transcript\/","url_meta":{"origin":140420,"position":4},"title":"Aarti Industries Ltd (AARTIIND) Q3 FY23 Earnings Concall Transcript","author":"IRS_INDIA","date":"February 6, 2023","format":false,"excerpt":"Aarti Industries Ltd (NSE: AARTIIND) Q3 FY23 Earnings Concall dated Feb. 06, 2023 Corporate Participants: Nishid Solanki\u00a0--\u00a0Investor Relations Rajendra Gogri\u00a0--\u00a0Chairman and Managing Director Analysts: Rohit Nagraj\u00a0--\u00a0Centrum Broking -- Analyst Vivek Rajamani\u00a0--\u00a0Morgan Stanley -- Analyst Archit Joshi\u00a0--\u00a0B&K Securities -- Analyst Sagar Sanghavi\u00a0--\u00a0JP Morgan -- Analyst Surya Narayan Patra\u00a0--\u00a0PhillipCapital -- Analyst Abhijit\u2026","rel":"","context":"In &quot;Earnings Call Transcripts&quot;","block_context":{"text":"Earnings Call Transcripts","link":"https:\/\/alphastreet.com\/india\/category\/transcripts\/"},"img":{"alt_text":"Earnings Conference Call Transcript","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":145618,"url":"https:\/\/alphastreet.com\/india\/aarti-industries-ltd-aartiind-q4-fy23-earnings-concall-transcript\/","url_meta":{"origin":140420,"position":5},"title":"Aarti Industries Ltd (AARTIIND) Q4 FY23 Earnings Concall Transcript","author":"IRS_INDIA","date":"May 10, 2023","format":false,"excerpt":"Aarti Industries Ltd (NSE:AARTIIND) Q4 FY23 Earnings Concall dated May. 09, 2023. Corporate Participants: Nishid Solanki\u00a0--\u00a0Investor Relations Shri Rajendra V. Gogri\u00a0--\u00a0Vice Chairman and Managing Director Shri Chetan Bipin Gandhi\u00a0--\u00a0Chief Financial Officer Analysts: Rohit Nagraj\u00a0--\u00a0Centrum Broking -- Analyst Lokesh Mallya\u00a0--\u00a0SBI Funds Management -- Analyst Anil Shah\u00a0--\u00a0Birla Mutual Fund -- Analyst Vivek\u2026","rel":"","context":"In &quot;Earnings Call Transcripts&quot;","block_context":{"text":"Earnings Call Transcripts","link":"https:\/\/alphastreet.com\/india\/category\/transcripts\/"},"img":{"alt_text":"Earnings Conference Call Transcript","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/140420","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=140420"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/140420\/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=140420"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=140420"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=140420"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}