Aether Industries (AETHER) Q4 21/22 earnings summary

Executive summary

• FY22 revenue from operations rose 31.2% YoY to ₹5,900.47 MM; EBITDA was ₹1,750.81 MM and PAT increased 53.2% to ₹1,089.29 MM.

• Growth was supported by all three business models, export expansion, in-house R&D and the solvent recovery plant; operations continued through the COVID-19 third wave.

• Commercial portfolio exceeded 25 products; products served 34 global customers in 18 countries and 154 domestic customers at March 31, 2022.

Financial highlights

• Revenue from operations ₹5,900.47 MM vs ₹4,498.16 MM YoY; total income ₹5,970.21 MM vs ₹4,537.89 MM.

• EBITDA ₹1,750.81 MM vs ₹1,161.32 MM, up 50.8%; PAT ₹1,089.29 MM vs ₹711.19 MM, up 53.2%.

• Basic and diluted EPS ₹9.67 vs ₹7.36; figures reflect the 10:1 bonus issue.

• COGS was 48.25% of revenue in FY22 vs 50.84% in FY21; total expenses were 75.47% of total income vs 79.33%.

• Adjusted EBITDA under the stated non-GAAP reconciliation was ₹1,681.07 MM, margin 28.5%; the headline EBITDA measure was ₹1,750.81 MM, margin 29.33%.

Outlook and guidance

• FY23 plans included launching five pharmaceutical advanced intermediates at the new Site 3 facility, targeted to be operational by end-2022; stated added capacity was 3,500–4,000 MT/year.

• Guidance called for aggressive growth, sustained EBITDA and PAT margins, expanded R&D and pilot-plant capacity, and increased CRAMS-to-contract manufacturing conversions; no numerical earnings target was stated.

• A 16 MW solar plant was expected to serve existing sites and the new facility in FY23; estimated project capex was ₹652 MM, with projected electricity cost savings of 40–50%.

• Additional Panoli land of approximately 125,000 sq. m. was secured for future expansion; strategic acquisitions in the US and Europe were under consideration.