Aarti Drugs to expand metformin capacity to 3000 TPM

Aarti Drugs has procured land to expand its existing Metformin Capacity to 3000 TPM in a brownfield expansion. This expansion would be a two-phase expansion program.

The company will start the Phase I expansion project to 2000 TPM in FY20-21. Additional CAPEX is being done for introducing new products in anti-diabetic category towards the end of FY20-21.

In the September’2020 quarter, the company recorded consolidated quarterly revenue of Rs 578.11 crores with a year-on-year increase of 21.07 per cent. API segment contributed approximately 88 per cent and formulation around 12 per cent of the total consolidated revenues. Domestic sales of the API segment grew by approximately 20.79 per cent and exports by 8.58 per cent. Around 55 per cent of the Y-o-Y growth in the API segment was due to volume growth. Formulation segment revenues grew by around 48.38 per cent on a year-on-year basis on the account of high export growth.

Consolidated EBITDA for the quarter ended September’2020 is Rs 116.73 crores, up by 70.41 per cent and consolidated profit after tax for the quarter ended September’2020 is Rs 75.27 crores, up by 132.96 per cent on a year-on-year basis. Consolidated EBITDA margin improved to 21.20 per cent. Debt/Equity ratio of the company reduced further down to 0.47 as of September’2020 on a consolidated basis due to internal accruals.

Company will soon announce its CAPEX plan of multiple projects which will include active pharmaceutical ingredients, speciality chemicals and intermediates.