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Aarti Industries Declares 20% Dividend for FY 2024

Aarti Industries has declared a 20% dividend of ₹1 per share for FY 2023-24, with a total payout of ₹36.25 Crores, to be paid on or before August 31, 2024, subject to shareholder approval at the 41st AGM.

by Damodharan N

Updated Jul 12, 2024

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Aarti Industries Declares 20% Dividend for FY 2024

Aarti Industries Limited has announced a 20% dividend of ₹1 per share for FY 2023-24. The Board of Directors has recommended this dividend, which is subject to approval by shareholders at the upcoming 41st Annual General Meeting (AGM). The total payout for this dividend is ₹36.25 Crores, significantly lower than the previous year's ₹90.63 Crores.

The company has set the record date for the dividend as July 26, 2024. Shareholders can expect the dividend payment on or before August 31, 2024. Each equity share has a face value of ₹5. This decision reflects Aarti Industries' commitment to returning value to its shareholders despite a challenging year.

The 41st Annual General Meeting (AGM) of Aarti Industries Limited is scheduled for August 2, 2024, at 11:00 a.m. (IST) via Video Conferencing. Key highlights include the approval of the audited financial statements for the year ending March 31, 2024, and a dividend of 20%.

The meeting will address the appointment of Shri Suyog Kalyanji Kotecha as an Executive Director, the re-appointment of Smt. Hetal Gogri Gala, and the appointment of several new Independent Directors.

Additionally, the AGM will consider revising the terms for Executive Director Shri Ajay Kumar Gupta and approve a commission for Non-executive Directors. The remuneration for the Cost Auditor for the financial year 2024-25 will also be discussed.

Aarti Industries Annual Report

Aarti Industries Limited (AIL) is a prominent player in the Indian specialty chemicals industry. With over four decades of experience, the company has built a strong foundation through its focus on research, innovation, and strategic growth.

AIL is recognized for its expertise in high-end chemistries and its diversified product portfolio. The company operates in various segments, including dyes, pigments, polymers, agrochemicals, and pharmaceuticals.

Business Verticals

AIL's business is categorized into several key verticals:

  • Specialty Chemicals: Manufacturing a wide range of products for diverse applications.
  • Pharmaceuticals: Producing active pharmaceutical ingredients and intermediates.
  • Home and Personal Care: Supplying chemicals for household and personal care products.

Financial Performance for FY 2023-24

Aarti Industries Limited reported a mixed financial performance for FY 2023-24, reflecting both challenges and resilience in a volatile market. Key financial metrics highlight a slight decline in revenue and profitability, but the company maintains strong fundamentals and strategic initiatives for future growth.

  • Revenue: Decreased from ₹7,283 Crores in FY 2022-23 to ₹7,012 Crores in FY 2023-24, a decline of 3.7%.
  • EBITDA: Dropped from ₹1,089 Crores in FY 2022-23 to ₹984 Crores in FY 2023-24, a decrease of 9.6%.
  • PAT: Decreased from ₹611 Crores in FY 2022-23 to ₹395 Crores in FY 2023-24, a decline of 35.4%.
  • Revenue: ₹7,012 Crores
  • EBITDA: ₹984 Crores
  • Profit After Tax (PAT): ₹416 Crores
  • Debt to Equity Ratio: 0.6
  • Earnings Per Share (EPS): 11.49
  • Dividend Per Share (DPS): ₹1.5

Standalone and Consolidated Financial Statements

Particulars

Standalone 2023-24

Standalone 2022-23

Consolidated 2023-24

Consolidated 2022-23

Total Income from Operations (Gross)

6,985

7,226

7,012

7,283

EBITDA

976

1,088

976

1,089

Depreciation & Amortisation

377

310

378

310

Profit from Operations before Other Income, Finance Cost and Exceptional Items

599

778

598

779

Other Income

8

0

8

1

Profit before Finance Cost

607

778

606

780

Finance Cost

211

166

211

168

Profit before Tax

396

613

395

611

Total Tax Expense

(21)

67

(21)

66

Net Profit for the period

417

546

416

545

Other Comprehensive Income (net of taxes)

6

(35)

6

(50)

Total Comprehensive income for the year

423

511

422

495

Earnings Per Share (Basic & Diluted)

11.51

15.06

11.49

15.04

Book Value Per Share

146

136

146

136

Production and Sales Milestones

Despite a challenging year, AIL achieved significant milestones in manufacturing with over a 20% increase in some product categories. The company maintained its market leadership in several segments, including being among the top manufacturers for 75% of its product portfolio.

Management's Discussion and Analysis

The Management's Discussion and Analysis for FY 2023-24 provides an in-depth look at Aarti Industries Limited's operational strengths and challenges. It highlights the company's robust product portfolio with key strengths and weakness and market conditions impacting performance, while outlining future growth prospects and objectives.

Key Strengths

  • Robust Product Portfolio: AIL's diversified product range and high-end chemistries provide stability against market volatility.
  • Strong Customer Relationships: Over 85% of revenue comes from customers with relationships of more than 10 years.
  • Strategic Initiatives: The company continues to strengthen partnerships, explore new alliances, and enhance its product offerings.

Key Weaknesses

  • Market Conditions: The global chemical sector faced sluggish demand, oversupply issues in China, and geopolitical tensions, impacting AIL's performance.
  • Margin Pressures: Increased peer capacities and demand contraction led to margin pressures, although normalization is expected in the coming years.

Future Outlook

AIL is focused on driving future growth by expanding its capabilities and exploring new chemistries such as photo chlorination and oxidation. The company aims to solidify its position as a global leader through strategic initiatives, including contract manufacturing and development collaborations. AIL projects a robust rebound in demand and healthy EBITDA growth for FY 2024-25 and beyond, driven by operating leverage and increased volumes.

Read the full Annual Report and AGM Notice Here

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Aarti Industries 

Aarti Industries Limited (AIL) is a leading Indian specialty chemicals manufacturer with a strong international presence. Over the last ten years, AIL has expanded its operations from India to a global scale, boasting over 1,100 products and state-of-the-art manufacturing facilities.

The company operates in over 60 countries and has a workforce of more than 6,000 employees. AIL's product range includes basic chemicals, agrochemicals, specialty chemicals, and intermediates essential for various industries such as agriculture, polymers, dyes, pharmaceuticals, and more.

The company’s advanced R&D centers support its commitment to innovation and sustainability across multiple sectors.


Aarti Industries Declares 20% Dividend for FY 2024 - FAQs

1. What was Aarti Industries' total income from operations in FY 2023-24?     

Aarti Industries' total income from operations for FY 2023-24 was ₹7,012 Crores.

2. How much EBITDA did Aarti Industries generate in FY 2023-24?   

Aarti Industries generated an EBITDA of ₹984 Crores in FY 2023-24.

3. What was Aarti Industries' Profit After Tax (PAT) for FY 2023-24?  

The Profit After Tax (PAT) for Aarti Industries in FY 2023-24 was ₹416 Crores.

4. What is Aarti Industries' Debt to Equity Ratio for FY 2023-24?   

The Debt to Equity Ratio for Aarti Industries in FY 2023-24 was 0.6.

5. What were Aarti Industries' Earnings Per Share (EPS) in FY 2023-24?   

Earnings Per Share (EPS) for Aarti Industries in FY 2023-24 was 11.49.

6. What was the Dividend Per Share (DPS) declared by Aarti Industries for FY 2023-24?   

Aarti Industries declared a Dividend Per Share (DPS) of ₹1.5 for FY 2023-24.

7. What was Aarti Industries' total income from operations in FY 2022-23?   

Aarti Industries' total income from operations in FY 2022-23 was ₹7,283 Crores.

8. How did Aarti Industries' revenue change from FY 2022-23 to FY 2023-24?   

Aarti Industries' revenue decreased from ₹7,283 Crores in FY 2022-23 to ₹7,012 Crores in FY 2023-24, a decline of 3.7%.

9. What was Aarti Industries' EBITDA in FY 2022-23?   

The EBITDA for Aarti Industries in FY 2022-23 was ₹1,089 Crores.

10. How did Aarti Industries' EBITDA change from FY 2022-23 to FY 2023-24?   

Aarti Industries' EBITDA decreased from ₹1,089 Crores in FY 2022-23 to ₹984 Crores in FY 2023-24, a decline of 9.6%.

11. What was Aarti Industries' PAT in FY 2022-23?   

The Profit After Tax (PAT) for Aarti Industries in FY 2022-23 was ₹611 Crores.

12. How did Aarti Industries' PAT change from FY 2022-23 to FY 2023-24?     

Aarti Industries' PAT decreased from ₹611 Crores in FY 2022-23 to ₹416 Crores in FY 2023-24, a decline of 35.4%.

13. What was Aarti Industries' total comprehensive income for FY 2023-24?     

The total comprehensive income for Aarti Industries in FY 2023-24 was ₹422 Crores.

14. What were Aarti Industries' standalone total income from operations in FY 2023-24?   

Aarti Industries' standalone total income from operations for FY 2023-24 was ₹6,985 Crores.

15. What were Aarti Industries' standalone EBITDA in FY 2023-24?   

The standalone EBITDA for Aarti Industries in FY 2023-24 was ₹976 Crores.

16. What were Aarti Industries' standalone PAT for FY 2023-24?   

The standalone Profit After Tax (PAT) for Aarti Industries in FY 2023-24 was ₹417 Crores.

17. What were Aarti Industries' consolidated total income from operations in FY 2022-23?   

Aarti Industries' consolidated total income from operations for FY 2022-23 was ₹7,283 Crores.

18. What were Aarti Industries' consolidated EBITDA in FY 2022-23?   

The consolidated EBITDA for Aarti Industries in FY 2022-23 was ₹1,089 Crores.

19. What were Aarti Industries' consolidated PAT for FY 2022-23?   

The consolidated Profit After Tax (PAT) for Aarti Industries in FY 2022-23 was ₹545 Crores.

20. What was Aarti Industries' depreciation and amortization in FY 2023-24?   

Aarti Industries' depreciation and amortization expense for FY 2023-24 was ₹378 Crores.

21. What was Aarti Industries' finance cost in FY 2023-24?   

The finance cost for Aarti Industries in FY 2023-24 was ₹211 Crores.

22. What was Aarti Industries' profit before tax in FY 2023-24?   

The profit before tax for Aarti Industries in FY 2023-24 was ₹395 Crores.

23. How much other income did Aarti Industries generate in FY 2023-24?   

Aarti Industries generated other income of ₹8 Crores in FY 2023-24.

24. What was Aarti Industries' total tax expense in FY 2023-24?   

Aarti Industries' total tax expense in FY 2023-24 was -₹21 Crores, indicating a tax benefit.

25. What was the net profit for Aarti Industries in FY 2023-24?   

The net profit for Aarti Industries in FY 2023-24 was ₹416 Crores.

26.  How did Aarti Industries' other comprehensive income change in FY 2023-24?   

Aarti Industries' other comprehensive income increased by ₹56 Crores, from -₹50 Crores in FY 2022-23 to ₹6 Crores in FY 2023-24.

27. What was Aarti Industries' book value per share in FY 2023-24?   

The book value per share for Aarti Industries in FY 2023-24 was ₹146.

28. What was Aarti Industries' profit from operations before other income, finance cost, and exceptional items in FY 2023-24?   

The profit from operations before other income, finance cost, and exceptional items for Aarti Industries in FY 2023-24 was ₹598 Crores.

29. What was Aarti Industries' net profit margin for FY 2023-24?   

Aarti Industries' net profit margin for FY 2023-24 was approximately 5.93%.

30. What percentage of Aarti Industries' revenue comes from long-term customers?   

Over 85% of Aarti Industries' revenue comes from customers with relationships of more than 10 years.

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