Aarti Drugs Limited — PPTs, 29-01-2025: Investor Presentation

**Financial Highlights:** In Q3 FY25, Aarti Drugs reported a revenue of ₹556.6 crore, down 6% YoY, and for 9M FY25, revenue declined 10% to ₹1,710.3 crore. The EBITDA for Q3 FY25 stood at ₹62.3 crore, with an EBITDA margin of 11.2%, while 9M FY25 EBITDA was ₹196.9 crore, reflecting a margin of 11.5%. Profit After Tax (PAT) for Q3 FY25 was ₹37.1 crore, a slight increase of 1% YoY, resulting in a PAT margin of 6.5%. Over 9M FY25, PAT decreased by 15% to ₹105.3 crore.

**Strategic Initiatives and Growth Drivers:** Aarti Drugs is focusing on increasing contributions from Specialty Chemicals and Formulations alongside backward integration to enhance cost efficiency. The company plans a capex of ₹600 crore to bolster its production capabilities, including the expansion of existing facilities and launching new product lines.

**Business Developments:** The company’s API segment continues to be a significant revenue contributor, accounting for approximately 83% of Q3 FY25 revenues. Aarti Drugs aims to reduce reliance on acute therapies, concentrating on chronic therapeutic areas to drive future growth.

**Market Position and Competitive Advantage:** Aarti holds a leading position in global API production, particularly for key drugs like Metformin and Ketoconazole. Its diversified product and client base, alongside robust R&D, enhances its competitive advantage in the pharmaceutical landscape.

**Investor Implications:** Given the company’s targeted capex, strong market positioning, and focus on specialty segments, there's a positive outlook for future growth and profitability. However, investors should watch for ongoing market dynamics and quarterly performance trends.