Aarti Industries Share Price: Aarti Industries shares tumble 9% as Q2 PAT falls 43% YoY

Shares of Aarti Industries cracked 9.3% to an intraday low of Rs 430.20 on the BSE after the company reported that its profit after tax (PAT) fell by 43% on a year-on-year (YoY) basis to Rs 52 crore for the July-September quarter.

The same stood at Rs 137 crore in the corresponding quarter of the previous financial year. Meanwhile, on a quarter-on-quarter (QoQ) basis, the figure had declined by 62%.

The revenue from operations was, however, up by 12% YoY to Rs 1,786 crore against Rs 1,597 crore reported in the same quarter of FY24.

Aarti Industries’ EBITDA stood at Rs 202 crore, which was down by 13% YoY and by 35% QoQ.

However, the company’s non-energy business volumes grew by 22% YoY and an uptick was visible across end applications into dyes, pigments, polymer additives. The Agrochemicals segment continued to remain soft.

The agrochemical sector, after registering significant growth in FY23, has been witnessing industry challenges of inventory correction, and pricing pressure due to lower demand since FY24.Pharma had witnessed significant volume growth during the pandemic and has normalised from FY24. Also read: Hot stocks: Brokerage view on InfoEdge, Tata Motors, SBI and Trent

Pricing pressure continued to prevail and the energy business volumes were down by 1% YoY. A steep drop in refining margins and gasoline-naphtha delta impacted the volumes in the energy application.

The shares of Aarti Industries have been on a falling spree, declining by 16.4% in the last one year and by 34.4% on a year-to-date basis. The stock has fallen by 36.5% and 42.75% in the last 6 and 3 months respectively.

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