Aarti Drugs Q2 earnings: CFO expects sales to reach Rs 3,500 crore, EBITDA margins at 16%

Aarti Drugs, the pharma major, plans to reach a sales value of around Rs 3,200 crore to Rs 3500 crore in two to three years. The pharma major, recently reported a 29% rise in net profit to Rs 45.28 crore in Q2 against Rs 35.01 Cr (YoY). Revenue rose 9.1% to Rs 652.8 crore in Q2 against Rs 598.3 crore in the year ago period. EBITDA also rose 25.8% to Rs 84.28 crore in the last quarter against Rs 67.02 Cr (YoY). EBITDA margins came at 12.91% in Q2 against 11.20% (YoY). 

Speaking to Business Today, Adhish Patil, CFO at Aarti Drugs said  achieving the sales target depends upon how quickly the utilisation ramps up.

"If it ramps up earlier, then we can reach that target bit earlier or is three years is the target, conservative target for us to reach that top line", said Patil

"And as far as EBITDA margins are concerned, what we estimate, if the market continues as it is, what it is right now, with the addition of these capacities and with, you know, new process, we are doing a lot of R&D in process improvements as well. And we have been getting success in that, plus we are doing a lot of improvements in energy consumption" added Patil. 

This should help take EBITDA margins to at least between 15 to 16 percent, believes Patil. 

Meanwhile, shares of Aarti Drugs were trading on a flat note at Rs 472 in the afternoon session on Wednesdday. The mid cap stock opened higher at Rs 483.85. The share trades lower than 5 day, 10 day, 20 day, 30 day, 50 day 100 day and higher than the 150 day and 200 day moving averages. Market cap of the firm stood at Rs 4,323 crore on BSE.