On Tuesday’s early trade, the manufacturer of Active Pharmaceutical Ingredients (API) saw its stock price rise by 12% to ₹581.80 per share following the company’s announcement of a robust 57% year-on-year increase in net profit.
At 11:15 a.m., Aarti Pharmalabs Ltd shares were trading at ₹582.60 per share, up 12% on the National Stock Exchange from the previous close price. The company has a market capitalization of ₹5,232 crore.
In the quarter ending March 2024 (Q4FY24), Aarti Pharmalabs Ltd reported a consolidated net profit of ₹63 crores, reflecting a 57% increase from the ₹40 crores recorded in Q4FY23. Furthermore, the company witnessed a notable surge in total revenue from operations for the same quarter, reaching ₹415 crores, marking a 11% rise compared to the previous year’s corresponding quarter’s revenue of ₹374 crores.
In the fourth quarter of FY24, the company saw a 31% surge in consolidated net profit, reaching ₹27 crores from ₹48 crores in Q3FY24. Similarly, the total revenue for the fiscal year rose by 11%, reaching ₹415 crores compared to ₹373 crores in the previous quarter, according to the company’s filing.
The company board has recommended the Final Dividend of ₹ 1 (20%) per Equity share of Face Value of ₹ 5 each for the Financial Year ending March 31, 2024, subject to the approval of the Shareholders at the ensuing Annual General Meeting of the Company.
Aarti Pharmalabs Ltd, a subsidiary of Aarti Industries Limited, specializes in manufacturing pharmaceuticals and nutraceuticals. The company is engaged in developing various products including Active Pharmaceutical Ingredients (APIs), New Chemical Entities (NCEs), API intermediates, Regulatory Starting Materials, Basic Starting Materials, and Key Building Blocks.
Over the past six months, Aarti Pharmalabs Ltd has experienced a noteworthy surge of 48% in its shares, and there has been a 53% increase over the course of the last 12 months.
With a diverse portfolio comprising over 125 products across 14 therapeutic segments, the company is actively working on developing more than 50 new products. Notably, it derives 50% of its revenue from export sales, catering to markets such as the US, Europe, and Russia.
Furthermore, the company is in the process of establishing a new manufacturing facility in Atali, Gujarat. Phase-1A of this Greenfield Project will feature 59 reactions and a production capacity exceeding 370 KL. Plans are underway to expand this capacity to 1000-1200 KL within the next 4-5 years.
Written by Omkar Chitnis
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