Aarti Industries shares traded in green on May 9 even as the chemical maker saw its revenue and margin dip sequentially in the January to March 2023 quarter. Except for profit, the firm’s quarterly earnings also missed CNBC-TV18 poll estimates.

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Even as the company missed projections, CMD Rajendra V Gogri said for the current fiscal 2023-24, the firm is looking at volume growth of around 25 percent.

“But part of that volume will come from our non-regular market because regular market demand is under pressure. EBITDA growth will be lower than that, we will be targeting around 20 percent growth in EBITDA for FY24,” he told CNBC-TV18 in an interview post the earnings.

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Gogri said his company is targeting revenue growth of about 30 to 45 percent over two years (at constant raw material cost). At present, of the total business, 10-15 percent of revenues come from dyes and intermediates.

Aarti Industries Limited has a portfolio of basic chemicals, agrochemicals, specialty chemicals, which are extensively used in the manufacture of pharmaceuticals, agro-products, polymers, additives, pigments and dyes.

He added that discretionary side demand seems to be recovering from at least the first quarter of FY24. However, some global demand is still under pressure on the discretionary side.

“On the discretionary side, we are looking at some pressure because of higher interest rate. Some inventory correction is also taking place. So the feedback we are getting is that quarter-on-quarter, demand should increase on the discretionary side in FY24 and exports will be continuing - around 50 percent of the sales will come from export,” he said.

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Meanwhile, the company has also recommended a dividend of Rs 1.50 (30 percent) per equity share of face value of Rs 5 each for the financial year ended March 31, 2023. It is subject to approval of shareholders at the ensuing annual general meeting of the firm.

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