Excellent results from Aarti Drugs!
This was a given, after one looked at the way promoters were buying every other day before the results…
Though FY11 was not great for them, they’ve have had an amazing FY12 and 13.
Ayush, can you share your views on ADL post results please?
Reproducing a section from an ICRA report:
"Scale, Diversification & Market Position â With an operating income of Rs. 659 crore in FY12, ADL is amid-sized Active Pharmaceutical Ingredients (API) manufacturer for generics. The company has a strongpresence in certain therapeutic areas such as anti-diarrhoeal, antibiotic, anti inflammatory, Vitamins andanti fungal. Amongst these, anti-diarrhoeal and antibiotic segment together contributes ~50% of the APIsales. Some of the major bulk drugs manufactured include Ciprofloxacin, Enrofloxacin, Metronidazole,MBO, Tinidazole, Ketocanazole, Diclofenac Sodium and Niacinamide. The company has a strong marketshare in domestic market, for certain products like Ciprofloxacin, Metronidazole and Tinidazole. Thecompany has a well diversified geographical presence with ~40% of revenues derived from exports withfocus on Asia, Latin America and Europe. Apart from manufacturing APIs, the company producesintermediates, specialty chemicals, and steroids. API sales are the revenue drivers of the company andcontribute ~80% of revenues. Within domestic market, company has a diversified client mix includingcustomers like Cipla Ltd, Dr Reddyâs Laboratories Ltd, Cadilla healthcare Ltd, Ranbaxy Laboratories Ltd,Alembic Ltd, Piramal Healthcare Ltd, Unichem Laboratories Ltd, Unimark Remedies Ltd, Glaxo SmithkineLtd, Deepak Fertilizers & Petrochemicals Ltd, etc. The company has limited presence in regulated marketsthough, with increased DMF/COS filings, is expected to register healthy growth from exports to regulatedmarkets going forward. Semi regulated markets in Asia, Europe and Latin America contribute ~75% ofexport sales.
Revenue Growth â
ADL registered healthy growth in FY12 after a muted FY11 though The growth hasbeen even stronger in current fiscal on back of expanded capacities coming online and strong demandfrom domestic as well as exports market. ADL is expected to cross Rs. 850 crore operating income in FY13and maintain the growth momentum in next fiscal too"