Aarti Pharmalabs (AARTIPHARM) Q4 23/24 earnings summary

Executive summary

• FY24 consolidated revenue was ₹185,261 lakh versus ₹194,523 lakh in FY23; EBITDA rose 12.8% to ₹3,860 Mn and PAT rose 12.1% to ₹2,169 Mn.

• Q4 FY24 consolidated revenue increased 4.3% YoY to ₹50,577 lakh; EBITDA reached ₹1,176 Mn, up 47%, and PAT was ₹6,525 lakh, up 52.2%.

• Growth investments span xanthine, CDMO/CMO, APIs and intermediates; FY25 is planned as a heavy-capex year.

• FY24 consolidated sales were 48% domestic and 52% international.

Financial highlights

• FY24 consolidated EBITDA margin was 20.84%, up 325 bps YoY; PAT margin was 11.71%, up 176 bps.

• Q4 FY24 consolidated EBITDA margin was 23.25%, up 676 bps YoY; PAT margin was 12.91%, up 407 bps.

• FY24 standalone EBITDA rose 12% to ₹346.2 crore and PAT rose 17% to ₹201 crore; standalone revenue was ₹150,213 lakh versus ₹151,125 lakh.

• Q4 FY24 standalone EBITDA was ₹107.3 crore and PAT ₹63 crore; standalone revenue was ₹41,482 lakh versus ₹37,427 lakh.

• FY24 diluted EPS was ₹23.93 consolidated and ₹22.14 standalone; consolidated operating cash flow was ₹21,636 lakh.

Outlook and guidance

• FY25 EBITDA growth guidance was 10%-12%; the long-term target is 15%+ annual growth over three years.

• Management cited overall growth guidance of 16%+ as new gross block is added.

• CDMO/CMO growth is expected to remain strong; management retained the possibility of the previously discussed 40%-50% growth range and said overall segment growth could be higher.

• Atali Phase 1 is planned to add 400+ KL of reactor volume, with commercialization expected in Q4 FY25.

• Consolidated gross margin is expected to move toward ~50% over the long term; quarterly results may fluctuate with customer deliveries and product/raw-material prices.