Aarti Drugs report stellar PAT growth

Aarti Drugs’ consolidated revenue for the fourth quarter of FY20 came in at Rs 449.64 crore, registering 2.1 per cent YoY decline.

EBITDA for the quarter rose by 27.5 per cent YoY to Rs 71.31 crore with a corresponding margin expansion of 368 bps. EBITDA margin for the quarter stood at 15.9 per cent. This margin expansion was aided by favourable changes in inventories.

PAT for the quarter came in at Rs 58.86 crore, with YoY increase of 114.5 per cent. It was due to a sharp decline in effective tax rate in the quarter.

In terms of full year, the company registered a revenue growth of almost 16 per cent YoY to Rs 1,806.10 crore while, its PAT surged almost 58 per cent YoY to Rs 141.40 crore. The company holds a strong cash balance of Rs 764 crore (cash & cash equivalent), which is almost 38 per cent of its current market capitalisation.

The stock of Aarti Drugs in today’s session was trading in a positive bias. The stock which opened gap-up at Rs 860, traded cautiously ahead of its result and hit an intraday low of Rs 824.65 but post announcement of this result, the stock gained and later it settled for the day at Rs 681.5, up by 2.9 per cent.