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Highlights
- The presented financial data is Consolidated to provide a comprehensive overview of the company performance.
- Sales over the Year and quarter: The company’s sales declined by -16 % over the year, decrease in net sales/revenue by -10.43 %.
- Income over the Year and quarter: There has been either a marginal increase or a decline in other income over the past year which is 85 %. Marginal increase in other income during this quarter, up by 2.78%.
- Profit over the Year and quarter: Challenges in sustaining profitability for Aarti Drugs Limited. Profit dropped by -30.64 % Year to Year, Aarti Drugs Limited’s profitability dropped by -29.68 % Quarter to Quarter.
- EPS over the Year and quarter: EPS declined by -30.12 % Year to Year. EPS decreased by -29.71 % in previous quarter. Analysis needed for shareholder value.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 661.11 Cr | Rs. 619.99 Cr | Rs. 555.34 Cr | -10.43 % | -16 % |
| Expenses | Rs. 577.04 Cr | Rs. 534.18 Cr | Rs. 490.38 Cr | -8.2 % | -15.02 % |
| Operating Profit | Rs. 84.07 Cr | Rs. 85.81 Cr | Rs. 64.96 Cr | -24.3 % | -22.73 % |
| OPM % | 12.72 % | 13.84 % | 11.7 % | -2.14 % | -1.02 % |
| Other Income | Rs. 0.6 Cr | Rs. 1.08 Cr | Rs. 1.11 Cr | + 2.78 % | + 85 % |
| Interest | Rs. 8.54 Cr | Rs. 9.13 Cr | Rs. 8.71 Cr | -4.6 % | + 1.99 % |
| Depreciation | Rs. 12.6 Cr | Rs. 13.58 Cr | Rs. 13.38 Cr | -1.47 % | + 6.19 % |
| Profit before tax | Rs. 63.53 Cr | Rs. 64.18 Cr | Rs. 43.98 Cr | -31.47 % | -30.77 % |
| Tax % | 24.49 % | 26.29 % | 24.35 % | -1.94 % | -0.14 % |
| Net Profit | Rs. 47.97 Cr | Rs. 47.31 Cr | Rs. 33.27 Cr | -29.68 % | -30.64 % |
| EPS in Rs | Rs. 5.18 | Rs. 5.15 | Rs. 3.62 | -29.71 % | -30.12 % |
Today, we’re looking at Aarti Drugs Limited’s financial performance for the Q1(Jun 2024).Starting with the top line, the company reported a significant year-over-year sales decline of -16 %. However, it did see a marginal slip of -10.43 % from the previous quarter. Expenses decreased slightly by -8.2 % quarter-on-quarter, aligning with the annual decline of -15.02 %. Operating profit, while down -22.73 % compared to last year, faced a quarter-on-quarter dip of -24.3 %, signaling a short-term contraction in margins.
The Operating Profit Margin (OPM) % contradicts this narrative, showing weakness on an annual basis with a decrease of -1.02 %, but a shrinkage of -2.14 % sequentially. Other income rose by 2.78 % compared to the last quarter, despite an annual growth of 85 %. Interest expenses dropped significantly by -4.6 % from the previous quarter, yet the year-over-year increase remains at a moderate 1.99 %. Depreciation costs fell by -1.47 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 6.19 %. Profit before tax declined annually by -30.77 % but saw a reduction from the preceding quarter by -31.47 %.
Tax expenses as a percentage of profits decreased slightly by -0.14 % compared to last year, with a more notable quarter-on-quarter decrease of -1.94 %. Net profit fell by -30.64 % year-on-year but witnessed a -29.68 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -30.12 % but a quarterly fall of -29.71 %. In summary, Aarti Drugs Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 661.11 Cr | Rs. 619.99 Cr | Rs. 555.34 Cr | -10.43 % | -16 % |
| Expenses | Rs. 577.04 Cr | Rs. 534.18 Cr | Rs. 490.38 Cr | -8.2 % | -15.02 % |
| Operating Profit | Rs. 84.07 Cr | Rs. 85.81 Cr | Rs. 64.96 Cr | -24.3 % | -22.73 % |
| Net Profit | Rs. 47.97 Cr | Rs. 47.31 Cr | Rs. 33.27 Cr | -29.68 % | -30.64 % |
| EPS in Rs | Rs. 5.18 | Rs. 5.15 | Rs. 3.62 | -29.71 % | -30.12 % |
In reviewing Aarti Drugs Limited’s 2024(Q1) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales experienced a decrease of -16 % year-on-year, although there was a slight dip of -10.43 % from the previous quarter. Expenses decreased by -15.02 % compared to the previous year, with a decrease of -8.2 % quarter-on-quarter. Operating Profit dropped by -22.73 % annually, and saw a -24.3 % decrease from the last quarter.
Net Profit showed yearly decrease of -30.64 %, and experienced a -29.68 % decrease from the previous quarter. Earnings Per Share (EPS) fell by -30.12 % annually, however dipped by -29.71 % compared to the last quarter. In essence, while Aarti Drugs Limited faces strong annual decline indicators, short-term improvements suggest the potential for recovery and the importance of strategic adjustments to counter market challenges effectively. That’s all for now in the financial sector.
