Aarti Industries Shares Fall 16% After Q1 Earnings

Disappointing Results and Guidance Weigh on Stock

Key Points

* Aarti Industries shares dropped 16.3% to Rs 614.70 on August 13. * The decline was driven by concerns over the company's guidance and margin pressures. * The company reported a 16% drop in net profit for the quarter ended June 30.

Aarti Industries is a specialty chemicals company that manufactures a range of products, including surfactants, dyes, and intermediates. The company's shares have been under pressure in recent months due to concerns over the global economic outlook and the impact of rising raw material costs. The latest decline in the stock price came after the company reported disappointing results for the quarter ended June 30.

The company's net profit fell by 16% to Rs 202.6 crore in the first quarter of fiscal 2025. Revenue also declined by 5% to Rs 1,240 crore. The company attributed the decline in profitability to rising raw material costs and a slowdown in demand in some of its key markets.

Analysts said that the company's guidance for the full year was also disappointing. Aarti Industries said that it expects to see a modest recovery in demand in the second half of the year, but that it does not expect to return to pre-pandemic levels of profitability.

The company's stock price has fallen by over 30% since the beginning of the year. Analysts said that the stock is likely to remain under pressure in the near term as investors remain concerned about the global economic outlook and the impact of rising raw material costs.