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

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

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.