February 9, 2024
To,
Listing/ Compliance Department To,
BSE LTD. Listing/Compliance Department
Phiroze Jeejeebhoy Towers, National Stock Exchange of
Dalal Street, India Limited
Mumbai – 400 001. “Exchange Plaza”, Plot No. C/1,
G Block Bandra - Kurla Complex,
Bandra (E), Mumbai – 400 051.
BSE CODE –524208
NSE CODE:AARTIIND
Dear Sir/Madam,
Sub.: Results Presentation
Ref: Regulation 30 of the SEBI
(LODR) Regulations, 2015
Please find enclosed herewith the Q3 FY24 Results Presentation of the Company
for your records.
Kindly take the same on record.
Thanking You,
Yours faithfully,
FOR AARTI INDUSTRIES LIMITED
Digitally signed by
RAJ KUMAR RAJ KUMAR SARRAF
SARRAF Date: 2024.02.09
10:09:20 +05'30'
RAJ SARRAF
COMPANY SECRETARY
ICSI M. NO. A15526
Encl.: As above.
Unlocking
Opportunities
Building a
Stronger
Future
Aarti Industries
Limited
• Q3 FY24
Results Presentation
Disclaimer
AARTI INDUSTRIES LIMITED may, from time to time, make written and oral forward-looking
statements, in addition to statements contained in the company's filings with BSE Limited [BSE] and
National Stock Exchange of India Limited [NSE], and our reports to shareholders. The company
does not undertake to update any forward-looking statements that may be made from time to time
by or on behalf of the AARTI INDUSTRIES LIMITED.
All information contained in this presentation has been prepared solely by AARTI INDUSTRIES
LIMITED. AARTI INDUSTRIES LIMITED does not accept any liability whatsoever for any loss,
howsoever, arising from any use or reliance on this presentation or its contents or otherwise arising
in connection therewith.
2
Agenda
01 02 03
Company Q3 & 9M FY24 Growth
Overview Financial Opportunity
Results & Strategy
3
Our Ethos
PURPOSE
Right Chemistry for
a Brighter Tomorrow CARE
VISION
To emerge as a Global Partner of
Choice for leading consumers of speciality INTEGRITY
chemicals and intermediates
MISSION
Delighted Stakeholders EXCELLENCE
About Aarti Industries Limited
Overview Financial Trends
▪ Established by first generation technocrats in 1984
▪ Specialized in Benzene-based derivatives 15% 15% ₹6,252 Cr.
▪ Integrated operations and high-cost optimization
▪ Key value chains include Nitro Chloro Benzenes, Di-Chlorobenzenes, 5-Year Revenue CAGR 5-Year EBITDA CAGR Fixed Assets Gross
Phenylenediamines, Nitro Toluene Value Chain and Sulphuric Acid & (excl. termination & (excl. termination & Block for FY23
Shortfall income) Shortfall income)
downstream
▪ Strong R&D capabilities with IPRs for customized products
▪ Strategically located: In western India with proximity to ports
Geographical Revenue
break-up (FY23)
100+ 1,100+ 60 16
Products Domestic & Global Exporting countries Manufacturing Plants
Customers
11 6000+ 2 5
Zero Liquid Discharge Employees State-of-the-art R&D No. of co-generation
Plants centres power plants
5
Note: The data and numbers presented on this slide is corresponds to the Chemical business only.
Key Strengths
Global Player in Benzene Well placed to benefit Strong Focus on R&D Well Diversified Across Thrust on
based Derivatives with from Industry Tailwinds and Process Innovation Multiple Dimensions Sustainability
Integrated Operations
Top 3 Alternate to 40+ 100+ 44%
In Chlorination and China & Products in R&D Multi-product Water recycled
Nitration globally pipeline
Europe 60+ 6500 KL
Fully Backward Countries Harvested through
Top 2 Integrated rainwater
In Hydrogenation Low-cost, sustainable 400+
globally manufacturing Global Customer 18.75%
opportunities in
Women at board
sunrise sectors 700+ level
Domestic Customer
6
Key End-Use Well Diversified Across Various Regions
Industries Served
Textiles and Fabrics Export North America 13% Europe 11%
48
Paints
China 6%
Medicines % Japan 3%
Air Fresheners 52
Domestic
Agrochemicals
ROW 15%
Polymers & Additives
Oil Refineries Key Customers
Revenue Break-up (FY 2022-23)
12
Agrochemicals
30
FMCG
26 % Polymer & Additives
Pharmaceutical
Dyes & Pigments
18
12 Other Discretionary
2
Sustainability Is At The
Core Of What Aarti Does
Environment
• 11 sites are Zero Liquid Discharge (ZLD)
• Total water recycled ~44% of the total water withdrawal in FY23
• More than 6,500 KL water harvested through rainwater in FY23
• Recycled 92% waste, remaining 8% is responsibly disposed
Social
• Incorporated requirements of UN Global Compact, International
Labour Organisation’s (ILO) Declaration and Sexual Harassment
of Women at Workplace Act, 2013, etc.
• Locally Sourced over 75% of raw materials and 98% engineering
goods.
• 13 lakhs + lives benefited through our CSR initiatives
• Implementation of Best-in-Class Safety Practices
Governance
• Robust Compliance framework covering 78 acts, 101 rules and
10,000 compliance provisions
• Cloud first approach for scalability and reliability to enable future
growth
• Robust Information Security Practices and Technology Centre
and R&D are ISO 27001 certified
8
Pioneering R&D Excellence
State-of-the-art R&D centres Planned product introductions, more than 50%
2 at Maharashtra & Gujarat 40+ products will be launched first time in India
19 PhDs and 18,000 Covered by an ultra-modern 7 Patents filed
220+ scientists Sq. Ft. synthesis laboratory
Fully Digitised Paperless Laboratory
with ISO 27001: 2013 Accreditation
• Developed various products and processes in-house throughout
AIL's journey
• Expertise in diverse chemistries at plant and lab scale, including:
Photochlorination, Nitrilation, AHF, Grignard, Diazotization and more
• Built a state-of-the-art 6,500 sq. ft. analytical laboratory with
experienced and qualified scientists
• Has a dedicated team of scientists who develop strategic chemistries
for multiple growth projects, such as:
• Photochemistry
• Vapour Phase Technology
• Flow Chemistry Technology
Agenda
01 02 03
Company Q3 & 9M FY24 Growth
Overview Financial Opportunity
Results & Strategy
10
Business updates
December 2023 January 2024
Entered into a long-term supply contract with a Global Entered into a 4-year supply contract worth over Rs. 6,000
Agrochem major for a niche agrochemical intermediate with a crore with a multinational conglomerate for a niche specialty
revenue potential of over Rs. 3,000 crore chemical
● To be executed over a period of 9 years commencing from ● To be executed from CY24 to CY27.
current fiscal.
● Product already a part of existing product basket of AIL
● Serves as a crucial input component for a widely used
● AIL has been supplying this product to the said customer for
Herbicide; global market for this Herbicide remains large
the past few years with consistent annual increase in
and growing steadily.
volumes. Volumes are expected to be doubled in CY24 vs
● Existing product for AIL and the product has already been that of CY23.
supplied to the said customer for past few years.
● Strong demand for this product based on newer applications
● Current CAPEX well aligned to meet this order requirement. which has been evolving over past 4 to 5 years.
● Anticipate an EBITDA margin of ~20% based on stable raw ● No incremental CAPEX needed as existing CAPEX is
material prices. structured to accommodate this additional requirement.
● Expect ~15-17% EBITDA margin based on the current input
prices.
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Q3 & 9M FY24 Highlights (Consolidated)
Revenues EBITDA Profit Before Tax Profit After Tax
18.30% 36.26%
15.02% 42.68% 137
1,889 289 160 124
1,854 268
233
117 91
82
1,597
Q3 FY23 Q2 FY24 Q3 FY24 Q3 FY23 Q2 FY24 Q3 FY24 Q3 FY23 Q2 FY24 Q3 FY24 Q3 FY23 Q2 FY24 Q3 FY24
Revenues EBITDA Profit Before Tax Profit After Tax
5,456 837 16.13% 476
43.28% 397 28.21%
7.31% 270 285
5,057 702
9M FY23 9M FY24 9M FY23 9M FY24 9M FY23 9M FY24 9M FY23 9M FY24
Amt in Rs. crore 12
*Comparison is on Q-o-Q basis;
Performance Overview – Q3 FY24
Revenue of Rs. 1,889 crore; an EBITDA of Rs. 268 crore; an increase PAT of Rs. 124 crore; an increase of
increase of 18% over Q2 FY24 of 15% over Q2 FY24 36% over Q2 FY24
• Sequential improvement in volumes owing to better demand visibility for products targeted at applications within the discretionary segment has translated into
QoQ EBIDTA growth. Non-discretionary portfolio barring select products remained tepid given the ongoing weak operating environment for both
agrochemicals and pharmaceuticals globally.
o Witnessed general improvement in pricing trends, although it still indicates some level of weakness
o Demand recovery seen in segments like Dyes, Pigments, Polymers and select Speciality Applications
o Challenges persist for Agrochemicals and Pharmaceuticals; anticipate widespread demand normalisation in the coming quarters
o Medium-to-long term outlook remains promising, bolstered by strategic shift in manufacturing to India and expected recovery in demand from key end-
user industries
• EBITDA improvement was driven by:
o Higher volumes with stable pricing for products.
o Operating leverage gains
• Project updates
o The Project initiatives are progressing satisfactorily, as planned.
o Capex of about Rs. 285 crore for Q3 FY24 and about Rs. 860 crore for 9M FY24. Annual capex estimated to be about Rs. 1,200-1,300 crore
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Chairman’s Message
Commenting on the performance for Q3 FY24, Mr. Rajendra Gogri – Chairman & Managing
Director at Aarti Industries Limited said:
“The recent few months has been noteworthy for Aarti Industries, with the attainment of two major high value orders on
a consecutive basis from prominent global customers. This demonstrates the depth of our discussions with potential
customers and underscores India's reputation as a reliable manufacturer on a global scale.
Building on our momentum from the preceding quarter, we once again delivered a resilient performance despite
ongoing global headwinds. I am glad to share that we have overcome these obstacles to achieve about 15% growth in
EBITDA on a Q-o-Q basis. This success is attributed to our diversified product mix, keen emphasis on operational
efficiencies, and unparalleled expertise in critical high-end chemistries. We continue to witness sequential improvement
in demand for our products and remain confident of accelerating our performance trajectory as the demand on ground
fully rebounds.
Our medium-to-long term expansion initiatives remain intact and progressing satisfactorily. The recent long-term
contracts will instill greater stability, enhance our plant utilization, strengthen our leverage, and substantially boost our
earnings going ahead. We are confident of achieving our stated guidance and delivering sustained value to all our
stakeholders.”
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Q3 & 9M FY24 – Consolidated Profit & Loss
Particulars (Rs. Crore) Q3 FY24 Q3 FY23 Y-o-Y (%) Q2 FY24 Q-o-Q (%) 9M FY24 9M FY23 Y-o-Y (%)
Gross Income from
1,889 1,854 1.9% 1,597 18.3% 5057 5,456 -7.3%
Operations
Exports 1,100 888 23.9% 854 28.9% 2,628 2,593 1.3%
% of Total Income 58.2% 47.9% 53.5% 52.0% 47.5%
EBITDA (with other Income) 268 289 -7.3% 233 15.0% 702 837 -16.1%
EBITDA Margin (%) 14.2% 15.6% 14.6% 13.9% 15.3%
EBIT 171 207 -17.4% 140 22.1% 422 610 -30.8%
EBIT Margin (%) 9.1% 11.2% 8.8% 8.3% 11.2%
PAT 124 137 -9.5% 91 36.3% 285 397 -28.2%
PAT Margin (%) 6.6% 7.4% 5.7% 5.6% 7.3%
EPS (Rs.) 3.42 3.77 -9.3% 2.5 36.8% 7.85 10.94 -28.2%
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Agenda
01 02 03
Company Q3 FY24 Growth
Overview Financial Opportunity
Results & Strategy
16
Future Growth Projects: Driven by R&D & Innovation
● Adding new chemistries and Value added
products Manufacturing
Outsourcing /
o 40+ products for Chemicals through Strategic Alliances
and Integrated Value Chain.
o Chloro Toulene Base capacity: Setting up Universal
~ 42000 TPA Multipurpose Plants
(UMPP)
● EBITDA margin ~ 25% - 30%
● CAPEX of about:
Growth Introducing Chloro
o Rs. 2,500-3,000 crore for Chemicals Initiatives Toulenes Value Chain:
(Range of products)
● Site development work initiated on 100+ acre under way
land at Jhagadia
● Environmental Clearances obtained / in
Custom Manufacturing
process Opportunities
● Project works already underway
● Will drive the growth from FY25 and beyond Newer range of Value-
Added products & Other
● End use majorly in Agrochemicals & Specialty Chemicals
Pharma.
17
Future Growth Opportunities & Outlook
Growth Strategy Outlook
Partnership with Global Companies
• Collaborate with world’s leading chemical companies • Macro Concerns on demand continuing from FY23 and is
FY24 expected to progressively improve in H2FY24.
• Build on existing partnerships and build new ones
• Contract Manufacturing/ CDMO Opportunities
New Product Development • Recovery of Volumes across the sector, Ramp-up of
capacities and higher operating leverages shall lead to
• Explore new value Chains
FY25 EBITDA growth
• Add new chemistry: e.g., Photochlorination, oxidation • Commissioning of expanded capacities of NT and
etc. Ethylation
• Expansion of existing Value chain • Zone 4 to start gradually going onstream.
Bio and Sunrise sector
• EBITDA to grow by ~ 20-25% CAGR driven by
• Sustainable/ green products with focus on biochemistry FY26 o Zone 4 ramping up.
Battery chemicals, Electronics chemicals, new age and
• o New Strategic opportunities
materials, high end polymers etc. beyond
o Higher utilisation for existing capacities at Zone 1,2,3
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About Us
Aarti Industries Limited (AIL) is one of the most competitive benzene-based speciality chemical
companies in the world. AIL is a rare instance of a global speciality chemicals company that
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combines process chemistry competence (recipe focus) with scale-up engineering
competence (asset utilization). Over the last decade, AIL has transformed from an Indian www.aarti-industries.com or contact:
company servicing global markets to what is fundamentally a global company selecting to
manufacture out of India. The Company globally ranks at 1st – 4th position for 75% of its
portfolio and is “Partner of Choice” for various Major Global & Domestic Customers.
Chetan Gandhi / Raj Sarraf
Aarti Industries Limited
AIL has de-risked portfolio that is multi-product, multi-geography, multi-customer and multi-
industry. AIL has 100+ products, 700+ domestic customers, 400+ export customers spread Email: [email protected]
across the globe in 60+ countries with major presence in USA, Europe, Japan. AIL serves
leading consumers across the globe for Speciality Chemicals and Intermediate for
Pharmaceuticals, Agro Chemicals, Polymers, Pigments, Printing Inks, Dyes, Fuel additives, Nishid Solanki / Shruti Joshi
Aromatics, Surfactants and various other Speciality Chemicals.
CDR India
AIL is committed to Safety Health & Environment, equipped with Quality policy mapped to
global benchmarks ensuring customer confidence and business sustainability. The Company Email: [email protected] / [email protected]
has 11 Zero Discharge units and a strong focus on Reduce-Reuse-Recover across its 15
manufacturing sites.
AIL is a responsible corporate citizen engaged in community welfare through associated trusts
(including Aarti Foundation and Dhanvallabh Charitable Trust) as well as focused NGOs
engaged in diverse social causes.
Over the years, AIL has received multiple awards and recognitions for outstanding export
performance, leadership in the chemical industry, efforts in conserving the environments as
well as ensuring sustainable growth through path breaking innovation.
19
Thank you
