Aether Industries reported better earnings on a year-on-year as well as sequential basis for the December quarter. Compared to the same period last year, the company's revenue grew 11 percent, while net profit gained close to 40 percent.

Domestic sales accounted for 30 percent of the overall topline.

EBITDA or operating profit increased 21 percent from last year while margin expanded over 240 basis points to 28 percent during the quarter. Compared to the September quarter, margin expanded 160 basis points.

The company said that it managed to pass 75 percent of the raw material inflation to its customers and that it expects its margin to improve going forward.

Aether commenced business with 10 new customers during the quarter.

The company said that its CRAMS or Contract Research and Manufacturing Services business continues to grow as has been the trend in the last two quarters and is projected to grow in the future as well due to demand returning from the global pharma industry. 13 percent of the overall topline comes from CRAMS and another 35 percent from contract or exclusive manufacturing business models.

The other 50 percent of the company's topline comes from large scale manufacturing.

The company's exports accounted for 70 percent, which include exports to SEZ and EOU units in India and Domestic Sales accounted for 30 percent of the total sales turnover. Exports outside India accounted for 31 percent of the total revenue from operations for the first nine months of the year.

Ather Industries earlier this week announced the commercialisation of a manufacturing site in Gujarat's Surat for producing speciality chemicals. The company is expected to spend Rs 190 crore capital on this unit. Of the total planned expenditure, Rs 163 crore will be used from the initial public offering that concluded in June last year and the remaining will be funded from internal accruals.

Shares of Aether Industries ended 2.4 percent higher at Rs 895.