Aarti Industries is expecting revenue growth of around 15 percent in the next year, said Rajendra V Gogri, CMD of the company on Friday.
Aarti Industries' total revenues for the December-20 quarter rose 9.52 percent on a consolidated basis to Rs 1186.78 crore. The consolidated profit after tax (PAT) for the quarter under review increased 18.55 percent to Rs 169.18 crore on the back of lower financing costs and higher efficiency in inventory management. PAT margins rose from 13.17 percent during the same period last year to 14.26 percent in Dec-20.
Gogri said that the margins at current levels would be sustainable.
“Chemical segment in India - the discretionary spend has reached almost pre-COVID level. In export market also the demand for discretionary spend is increasing. We are now more or less able to supply material to our regular markets. So, we see this kind of a margin to be sustainable,” he said in an interview with CNBC-TV18.
On the demerger of the pharma business, Gogri said, “Pharma segment over the years has grown sizably. We should have an EBIT of Rs 200 crore plus this year with an almost 20 percent ROCE level. It has matured quite a bit and that is why we are considering because manufacturing site and business are quite different.”
On the specialty chemicals business, Gogri said that though it was the most impacted by COVID, it will see volume growth next year.Watch video for more.