Aether Industries

 Aether Industries records 17.7% PAT increase QoQ

 

Revenue recorded an increase of Rs. 18.5 crore quarter on quarter to Rs.166.2 crore, EBITDA jumped up by 14.9 percent quarter on quarter to Rs. 48.6 crore, and EBITDA Margin is at 29.3%. PAT increased by 17.7% quarter on quarter to Rs. 30.6 crore, with a PAT margin of 18.4%.

 

Surat, July 25, 2022: Aether Industries Limited, India’s leading specialty chemical manufacturer that focuses on advanced intermediates and specialty chemicals, has announced its financial results for the first quarter ended on June 30, 2022.

 

Financial Highlights –

Particulars (Cr.)	Q1FY23	Q4FY22	FY22	QoQ(%)
Revenue	166.2	147.7	597	12.5%
EBITDA	48.6	42.3	175	14.9%
PAT	30.6	26.0	109	17.7%

 

Q1FY23 vs Q1FY22 Highlights –

 

Ø  Revenue from operations stood at Rs. 160 crore in Q1FY23 as against Rs. 150 crore in Q1FY22

Ø  EBITDA reported at Rs 48.6 crore in Q1FY23 as compared to Rs. 47.5 crore in Q1FY22

Ø  Profit Before Tax stands at Rs 41.2 crore in Q1FY23 as against Rs. 40.4 crore in Q1FY22

Ø  Profit After Tax reported was at Rs. 30.6 crore in Q1FY23 as against Rs. 32.3 crore in Q1FY22

Ø  EPS stands at Rs. 2.46 (basic) and Rs.2.46 (diluted) 

 

Operational Highlights

 

·         Revenue from Exports (including deemed exports and SEZ sales) increased by 17.0% in Q1 FY23 (Rs. 110.7 crore) in comparison with Q1 FY22 (Rs. 94.6 crore).

·         The order book as of June 30, 2022 is Rs. 246 crores, compared to Rs. 229 crores as of June 30, 2021.

Business Segment Highlights

 

Contract Research and Manufacturing Services

 

We have been able to increase the share of this business segment, wherein we have generated 12% of the total revenue from operations, which was only 8% till last FY.

 

We are of the opinion to continue this growth of CRAMS business and also generate better margins.

 

Contract / Exclusive Manufacturing Services

 

Contract Manufacturing has also shown an increasing trend wherein we have cloaked 33% of the total revenue from this business segment, which was only 20% in the previous FY

 

Commenting on the results, Dr. Aman Desai, Promoter & Whole-time Director, Aether Industries, said, ‘First Quarter after listing and we are very much satisfied with the results, which we are seeing very much in line with our internal targets for the FY23.We have managed to keep up with the times owing to our distinct strategy, processes, continual investment in R&D, and development of improved manufacturing platforms.’.

 

Additionally states, If we were to speak of the three business models, the sales revenue break-up for the Q1 FY23 looks more interesting with Large Scale Manufacturing contributing 53% (FY22 it  was 67%), Contract Manufacturing contributing 33% (FY22 it was 24%) and Contract Research and Manufacturing Services (CRAMS) contributing 12% (FY22 it was 8%) of the revenue from operations. If we were to look at the industry mix, Pharmaceutical accounts for 50.11%, Agrochemical accounts for 33.72 %, High Performance Photography accounts for 7.18 %, Material Sciences accounts for 4.38%, Coatings accounts for 3.74%  and others  accounts for 0.87% of the revenue from operations in Q1 FY23.

 

We started off the Company in 2013 and have done extensive Research and Development in the initial years, which we still continue to do as R&D is the heart of our Company. The expenses towards R&D (revenue plus capital) have been increasing year on year in absolute terms and also as a percentage of total revenue, wherein in the Q1FY23 out of our total revenue 6.90% is spent towards R&D.

 

Focus of the Company has always been on the Quality, Environment, Health & Safety (QEHS), where we have a total of 16.1% of manpower (of our total strength as on June 30, 2022) deployed to these areas. We have also been awarded a Silver EcoVadis Medal, for the sustainability initiative. We are also a proud member of UN Global Compact for the various corporate social responsibility initiatives.

 

We have also started the ESG (Environmental, Social and Governance) Reporting exercise and soon will be going ahead with the ratings for the same.

 

Solar Power Plant commissioning is done and we have already started to generate power from the said plant.

 

Our facility 3, Greenfield Project is very much in line with the timelines and we have started the commissioning of the reactors and other plants and machineries, after the cilvil work has been completed in June 2022 start.”