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.

Aether Industries Limited (AIL) has reported a robust financial performance for the first quarter ended June 30, marking significant growth and strategic developments.

Strong Financial Performance

AIL posted consolidated revenue of ₹2,587.00 million for Q1, representing a 35% year-on-year increase from ₹1,920.00 million in the same period last year. The company's profit after tax (PAT) reached ₹470.00 million, up 57% year-on-year from ₹299.00 million.

Key Financial Highlights (Consolidated)

Strategic Partnership with Milliken & Company

Aether Industries has executed a Contract/Exclusive Manufacturing Agreement with Milliken & Company, positioning AIL as the sole manufacturing partner for a key strategic product. This agreement, spanning an initial 10-year period, demonstrates AIL's growing prominence in the specialty chemicals sector.

Expansion and Growth Initiatives

• Site 5 Expansion: The company is progressing with its Site 5 expansion, with the commissioning of two production blocks expected by the end of Q3.
• Site 3++ Expansion: This project remains on track, with product launch targeted for Q4, aligning with the Milliken partnership.
• New Land Acquisition: AIL has secured an adjacent parcel, expanding Site 5 to 46 acres, providing strategic foresight for future business expansions.

Business Model Performance

Operational Highlights

• Accomplished 11 customer and certification audits, demonstrating operational excellence.
• Onboarded 6 new customers across all business models during Q1.
• R&D investment of ₹168.79 million, accounting for 6.54% of total revenues, underscoring AIL's commitment to innovation.

Corporate Governance

The Board of Directors has approved the appointment of new statutory, secretarial, cost, and internal auditors for varying terms, subject to shareholder approval at the upcoming 13th Annual General Meeting scheduled for September 12.

Compliance Update

AIL addressed a non-compliance notice from NSE regarding Regulation 23(9) of SEBI LODR Regulations. The board commented that the issue appears to result from a technical submission problem, and the company is working with NSE to resolve the matter.

Aether Industries Limited continues to demonstrate strong growth and strategic initiatives, positioning itself for sustained success in the specialty chemicals industry.