The share price of this leading API manufacturer company rose to 2.6 percent to ₹529 per share after the company initiated Commercial Production of Dermatology Products at the New Facility.
At 2:55 p.m, Aarti Industries Ltd shares were trading at ₹527.65 per share, up 2.53 percent from the previous close price. The company has a market capitalization of ₹4,846 crore.
Aarti Drugs Limited announced the commencement of production of Dermatology Products at the new facility at Tarapur, Maharashtra on 30th January 2024. This expansion aligns to strengthen its presence in the skincare segment and contribute to the advancement of healthcare.
The dermatology product portfolio encompasses a wide range of formulations designed to address various dermatological conditions, including but not limited to, dermatitis, psoriasis, acne, and eczema.
The total Investment requirement will be around ₹ 150 to ₹200 crores to complete setting up the facility and it is partially financed through term loan and internal accruals. The facility will have a total operational capacity of 24,000 MTPA. The company reported in its exchange filing.
Aarti Drugs Ltd is engaged in manufacturing and selling Active Pharmaceutical Ingredients (APIs), Pharma Intermediates, Specialty Chemicals as well as Formulations. The company exports its APIs and Speciality chemicals to over 100 countries across the globe.
Aarti Drugs Ltd shares have gained 7% in the last month and 32% in a year.
The company’s revenue has declined by 14% year on year, from ₹626 crore in Q3FY23 to ₹538 crore in Q3FY24. During the same period, Net profit decreased by 13% from ₹37 crores to ₹32 crores.
Based on the revenue mix, Aarti Drugs receives 80% of its revenue from the API segment, followed by 13% from the drug formulation segment and 5% from specialty chemicals segments.
The company has notable clients including Cipla, Sun pharma, Lupin, Mankind, and many others.
Written by Omkar Chitnis
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