Aether Industries Limited , a specialty chemicals manufacturer, has reported strong financial results for the first quarter, with significant growth in revenue and profitability.

Financial Highlights

• Consolidated revenue rose 35% year-on-year to INR 2,587.00 crore
• EBITDA surged 94% to INR 781.00 crore
• EBITDA margin expanded to 30% from 22% in the previous year
• Profit After Tax (PAT) increased 57% to INR 470.00 crore
• PAT margin improved to 18% from 16% in the same quarter of the previous fiscal year

Business Performance

The company's large-scale manufacturing vertical grew 9% year-on-year and 8% quarter-on-quarter, demonstrating robust demand for its products. Aether Industries added six new clients during the quarter, further expanding its customer base.

The business model contribution for the quarter was as follows:

Export revenue accounted for 33% of total revenues, while domestic sales stood at 66%.

Strategic Developments

Aether Industries executed a 10-year exclusive manufacturing agreement with Milliken Chemical & Textile India for a new product. The company will be dedicating its Site 3+ facility for this contract, with production expected to commence by Q4.

Expansion Plans

The development of Site 5 in Panoli is progressing as scheduled, with the first two production blocks expected to be operational by the end of Q3. The company plans to launch its own large-scale manufacturing products in the first production block, targeting the pharmaceutical, agrochemical, and material science sectors.

Sector-wise Contribution

Financial Outlook

• Planned capex of INR 350.00 crore
• Expected insurance claim settlement of INR 50.00-60.00 crore by Q2
• Working capital cycle improved to 190 days from 195 days

R&D Expansion

Aether Industries is investing INR 30.00-40.00 crore to expand its R&D facilities, increasing the number of labs from 8 to 23 and fume hoods from 65 to 195.

Dr. Aman Desai, Promoter and Whole-Time Director, commented on the global opportunities, stating, "This is proving to be a golden age for Indian chemical companies. Aether is well-poised to take maximum advantage of the opportunities that exist today in the global specialty chemical industry."

The company's strong performance and strategic initiatives position it well for continued growth in the specialty chemicals sector.

Aether Industries Limited , a leading specialty chemicals manufacturer, has announced ambitious targets for its new products and reported robust financial results for the first quarter.

New Product Strategy and Milliken Contract

The company has set a goal of achieving at least a 25% EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin on new products before receiving production approval. This target underscores Aether Industries' commitment to developing high-value specialty chemicals and maintaining strong profitability across its product portfolio.

In a significant development, Aether Industries has executed a Contract/Exclusive Manufacturing Agreement with Milliken Chemical and Textile (India) Co. Pvt. Ltd., a wholly-owned subsidiary of the USA-headquartered Milliken & Company. Under this agreement, Aether will serve as the current sole manufacturing partner for a key strategic product for Milliken. The company expects this contract to deliver margins that are equal to or exceed its current margin levels, further bolstering its financial outlook.

Q1 Financial Highlights

Aether Industries has reported impressive financial results for the first quarter:

• Revenue: The company's consolidated revenue from operations surged to ₹2,561.37 crore, marking a significant year-on-year growth of 35% compared to ₹1,800.15 crore in the same quarter of the previous year.
• EBITDA: Consolidated EBITDA stood at ₹781.00 crore, representing a substantial increase of 94% year-on-year from ₹402.00 crore in the same quarter last year.
• Profit After Tax (PAT): The company's PAT rose to ₹470.20 crore, showing a robust growth of 57% compared to ₹299.32 crore in the corresponding quarter of the previous year.
• EBITDA Margin: Aether Industries maintained a healthy EBITDA margin of 30% for the quarter.

Business Model Performance

The company's revenue breakdown by business model for the quarter is as follows:

Expansion and Future Outlook

Aether Industries is actively pursuing expansion plans to support its growth trajectory:

• Site 5 Expansion: The company is on track with its Site 5 expansion, with phase one commissioning of two production blocks expected by the end of Q3.
• Site 3++ Expansion: This expansion is dedicated to the Milliken contract, with the strategic product launch targeted for Q4.

R&D Investment

Demonstrating its commitment to innovation, Aether Industries invested ₹168.79 crore in Research & Development during the quarter, accounting for 6.54% of total revenues. This significant R&D expenditure underlines the company's focus on developing new, high-margin products.

Ashwin Desai, Managing Director of Aether Industries Limited, commented on the results, stating, "Our strong performance in Q1 reflects the success of our strategic initiatives and the growing demand for our specialty chemical products. The new agreement with Milliken and our ambitious targets for new products position us well for sustained growth and profitability."

As Aether Industries continues to expand its operations and focus on high-margin products, the company appears well-positioned to capitalize on opportunities in the specialty chemicals market and deliver value to its shareholders.