November 8, 2024

To, To,
Listing/ Compliance Department Listing/Compliance Department
BSE LTD. National Stock Exchange of
Phiroze Jeejeebhoy Towers, India Limited
Dalal Street, “Exchange Plaza”, Plot No. C/1,
Mumbai – 400 001. G Block Bandra - Kurla Complex,
Bandra (E), Mumbai – 400 051.
NSE CODE:AARTIIND
BSE CODE –524208

Dear Sir/Madam,

Sub.: Analyst Meet Presentation

Ref: Regulation 30 of the SEBI
(LODR) Regulations, 2015

Please find enclosed herewith the Analyst Meet Presentation on Q2 FY25 and H1
25 Financial Highlights, Future Outlook and Roadmap.

Kindly take the same on record.

Thanking You,

Yours faithfully,
FOR AARTI INDUSTRIES LIMITED
Digitally signed by
RAJ KUMAR RAJ KUMAR SARRAF
SARRAF Date: 2024.11.08
19:28:00 +05'30'

RAJ SARRAF
COMPANY SECRETARY
ICSI M. NO. A15526
Encl.: As above.
Analyst Meet Resilient Today
8th November 2024 Promising Tomorrow
 Disclaimer

AARTI INDUSTRIES LIMITED may, from time to time, make written and oral
forward looking statements, in addition to statements contained in the company's
filings with BSE Limited [BSE] and National Stock Exchange of India Limited [NSE],
and our reports to shareholders. The company does not undertake to update any
forward-looking statements that may be made from time to time by or on behalf of
the AARTI INDUSTRIES LIMITED.

All information contained in this presentation has been prepared solely by AARTI
INDUSTRIES LIMITED. AARTI INDUSTRIES LIMITED does not accept any liability
whatsoever for any loss, howsoever, arising from any use or reliance on this
presentation or its contents or otherwise arising in connection therewith.
 Index

Company overview

Q2FY25 and H1 25 Highlights

Future Outlook and Roadmap

An excerpt from Aarti Mural that adorns the facade of

our Vadodara Office
 Index

Company overview

Q2FY25 and H1 25 Highlights

Future Outlook and Roadmap

An excerpt from Aarti Mural that adorns the facade of

our Vadodara Office
Aarti Industries at a Glance
Toluene based Sulphuric Acid
Downstream Products
Products
● Established by first generation technocrats in 1984
Benzene based Speciality Other Speciality
● Integrated operations and high-cost optimization Chemicals
Downstream Chemicals
● Key value chains include Nitro Chloro Benzenes, Di-Chlorobenzenes, Products

Phenylenediamines, Nitro Toluene Value Chain and Sulphuric Acid &

Manufacturing Strategic
downstream Outsourcing Partnerships Feedstock Assurance and
Supply
● Strong R&D capabilities with IPRs for customized products
● Strategically located: In western India with proximity to ports Joint Product Technology Sharing
Development

1100+ 60
100+ Domestic &
Products Exporting
Global Customers Countries

16 11 5
Manufacturing Zero Liquid Co-generation
Plants Discharge Plants Power Plants

2
6,000+
State-of-the art
Employees
R&D Centers
5
Our Ethos

PURPOSE

Right Chemistry for AIL VALUES

a Brighter Tomorrow CARE

VISION
To emerge as a Global Partner of
Choice for leading consumers of INTEGRITY
speciality chemicals and intermediates

MISSION

Delighted Stakeholders EXCELLENCE

6
Board of Directors (Executive and Non Executive)
Onboarded
in FY25

Mr. Rajendra Gogri

Chairman and MD

Mr. Rashesh Gogri Mr. Renil Gogri Mr. Suyog Kotecha

Vice Chairman & MD Vice Chairman CEO & Executive Director

Mr. Manoj Chheda Mr. Ajay Kumar Gupta Mrs. Hetal Gogri Gala
Executive Director Executive Director Non-Executive Director
7
 Board of Directors (Independent Directors)
Onboarded
in FY25

Shri Lalit Kumar Naik Shri Shekhar Khanolkar Prof. Aniruddha B Pandit Shri Belur Krishnamurthy Sethuram
25Y+ | Ex CEO & MD Welspun Corp. 30Y+ | Ex ED & MD in Navin Fluorine 40Y+ | Vice Chancellor, ICT, Mumbai 38Y+ | Celanese | Dow Chemicals
AIL BOD (Ind.) May 2019 International Limited AIL BOD (Ind.) Jun 2023 AIL BOD (Ind.) Jun 2024
AIL BOD (Ind.) Jun 2023

Industry Specialist

Governance Specialist

Smt. Rupa Devi Singh Shri Ashok Kumar Barat Shri Nikhil J. Bhatia
40Y+ | Founding Managing Director of 40Y+ | Ex MD & CEO of Forbes & 40Y+ | Consultant (Erstwhile
Power Exchange Company Limited Partner) at CNK & Associates LLP
AIL BOD (Ind.) Sep 2024 AIL BOD (Ind.) Sep 2024 AIL BOD (Ind.) Sep 2024
8
 Index

Company overview

Q2FY25 and H1 25 Highlights

Future Outlook and Roadmap

An excerpt from Aarti Mural that adorns the facade of

our Vadodara Office
 Q2 & H1FY25 Highlights (Consolidated)
YoY : 12%▲ YoY : 13%▼ YoY : 43%▼
QoQ: 11%▼ QoQ: 35%▼ QoQ: 62%▼
● Non-Energy Business
Volumes:
● YoY: ▲22%,
● QoQ: ▲11%
● Volume uptick visible across
end applications into Dyes,
Pigments, Polymer Additives,
Q2FY24 Q1FY25 Q2FY25 Q2FY24 Q1FY25 Q2FY25 Q2FY24 Q1FY25 Q2FY25
while Agrochemicals continues
to remain soft.
Revenues EBITDA Profit After Tax ● Pricing pressure continues to
YoY: YoY: YoY: prevail.
20%▲ 18%▲ 18%▲
● Energy Business Volumes:
● YoY: ▼1%
● QoQ:▼36%
● Steep drop in refining margins
& gasoline-naphtha delta
impacted the volumes in the
Energy application

H1FY24 H1FY25 H1FY24 H1FY25 H1FY24 H1FY25

10
Amt in ₹ Crore
 Financial Highlights

Particulars Q2FY25 Q2FY24 Y-o-Y(%) Q1FY25 Q-o-Q(%) H1FY25 H1FY24 Y-o-Y(%)

Gross Income 1,786 1,597 11.8% 2,012 -11.2% 3,797 3,168 19.9%

EBITDA 202 233 -13.3% 311 -35.0% 512 434 18.0%

Margin(%) 11.3% 14.6% -3.3% 15.5% -4.2% - 13.5% 13.7% -0.2%

PAT 52 90 -42.2 137 -4.5% 189 160 18.1%

EPS (₹) 1.44 2.50 -44.4% 3.72 -61.3% 5.22 4.43 17.8%

Highlights for the quarter

● While YoY volume grew by ~15%, margin pressures across various product / enduses resulted in lower gross profits.
● Fixed costs remained constant.
● Exceptional Income of 2.3 crs constitutes the gain on account of divestment of stake in a step down subsidiary, ie
Nascent Chemical Industries Ltd
● Interest costs remained constant. Benefit for interest rates to accrue gradually from next quarter.
● Depreciation increase attributable to commercialisation of expanded capacities/projects.
● Basis H1FY25 numbers, the company’s tax liability is declining and corresponding deferred tax assets are accrued.

11
Amt in ₹ Crore
 Capacities and utilization trend for few major products
Capacity (in KTPA) Q1 Q2 H1 H1 Y-o-Y H1 FY25
Product Groups FY22 FY23 FY24
(Expanded period) FY25 FY25 FY24 FY25 H1 Utilization%
108
NCB 76.6 77.8 73.5 19.5 19.0 36.3 38.5 6% 72%
(From Q3FY24)

DCB 120 74.6 84.2 80.7 24.1 23.3 39.9 47.3 19% 79%

Hydrogenation1 60 35.7 37.2 39.1 10.3 11.2 18.0 21.5 19% 72%

PDA 12 6.5 4.2 4.4 0.6 1.0 1.3 1.6 23% 27%

45
NT 16.0 23.9 30.5 7.6 7.4 16.9 15.0 -11% 67%
(From Q4FY25)
25-30
Ethylation1 7.2 11.9 10.5 2.6 3.2 5.4 5.8 7% 46%
(From Q4FY25)
200
MMA 23.1 37.8 89.3 31.1 20.5 29.8 51.6 73% 52%
(From Q3FY25)
Significant upside possible linked to increased utilization of existing assets - operating leverage linked to demand growth

Notes:
1.Volume are in KT
2. Above capacities and volume nos are for few product only and not the entire range of AIL products.
3. Hydrogenation & Ethylation are Single chemistry multiple product plants. Effective capacity would vary with the change in product-mix 12
4. H1FY25 utilisation % are arrived at by comparing the H1FY25 volumes with the capacities to be available by end of FY25.
 Revenue by End Use | Significant evolution in the last 3 years

Rs 6,871 cr Rs 7,283 cr Rs 7,012 cr Rs 2,012 cr Rs 1,786 cr

● Agrochemical sector after registering
18% significant growth in FY23, has been
Agrochemicals & 30% 21% 20% witnessing industry challenges of
23%
Fertilizers
inventory correction, pricing pressure
12% 14%
10% due to lower demand since FY24.
Dyes, Pigments and
13%
Printing Inks 12% ● Dyes, Pigment & Printing Inks has
growth linked with economic cycles.
15%
Energy 32%
15%
34% ● Energy end application is getting
41%
evolved and has large potential, but
Pharma 19%
18% 11% remains volatile due to linkage to
9% gasoline-naphtha margins.

Polymer and Additives 17% 12% 9% 8% 18% ● Pharma had witnessed significant
8% volume growth during the pandemic and
Others 13% 13%
15% 9% 11% has normalised from FY24.

FY22 FY23 FY24 Q1 Q2 ● Polymer & Additives is on a recovery

FY25
path.

13
 Agrochemical and Fertilizers

Key Products: Market Update:

Chloro Anilines, Di Chloro
Phenols, Ethylated & ● Adverse weather conditions in the US and Latin America
Fluorinated products ● Channel inventories are returning to normal levels in major markets but
overhang may persist at a product to product level
● Crop consumer prices continue to remain soft, impacting farm profitability and
appetite for crop protection products
19% ● Market environment may improve in H1CY25 but pricing pressure continues
Revenue Share¹ due to overcapacities in China

Business Highlights:
41%
Exports¹ ● Targeting higher market share across products.
● Developing alternate products to effectively utilise expanded ethylation
capacity including introduction of propylation technology
● Backward integration for downstream products which are already part of the
59% portfolio.
Domestic¹ ● Leveraging R&D / Technology to commercialise new products in asset light
manner (tolling / outsourcing)

14
1 H1 FY25
 Dyes, Pigments and Printing Inks

Key Products: Market Update:

PNCB, DCBH, PNT ● Textile industry (major end-use of dyes) temporarily impacted in Bangladesh
due to political unrest
● Pigment industry undergoing consolidation (e.g., Sudarshan Chemicals
acquires business of Germany-based Heubach)
● Indian dyes players are facing competition - leading to margin pressure in the
12% chain
Revenue Share¹ ● Anti-dumping duty on Sulphur Black from China (Oct‘24, 5 years); Demand
for a key intermediate expected to increase

28%
Exports¹ Business Highlights:

● Slight dip in volumes for dyes intermediates due to geopolitical issues and
working capital cycles being extended across the textile industry
72% ● Expect volume and margin improvement in the domestic market given
Domestic¹ industry consolidation
● Major portion of this market operates on spot/ short term contracts;
introducing schemes for encouraging consistent volume offtakes

15
1 H1 FY25
 Energy & additives (1/2)

Key Products: Market Update:

MMA, CaCl2 ● Gasoline - Naphtha crack is on a decline making octane boosting economics
difficult in the present market conditions
● Led to significant volume impact for MMA in Q2
● Gasoline naphtha delta expected to remain low for Q3; potential recovery
possible in Q4 with USA summer spec and demand
37% ● Few Chinese and Indian players have started manufacturing MMA, though
Revenue Share¹ the present capacities for relatively less as compared to that of AIL

Business Highlights:
77%
Exports¹ ● Expanded capacity to 200KTPA - ability to expand further with limited
investment.
● Bulk shipment capability established for servicing strategic customers
● Strategic efforts to diversify customers and geography base (USA, Europe,
23% Singapore and refineries in global market)
Domestic¹ ● Technical sales capability with support from market experts; strategic tie ups
with local distributors in new geographies
● Cost optimization in process and logistics

16
1 H1 FY25
 Energy & additives (2/2)
Gasoline - Crude Crack Gasoline - Naphtha Spread
$ / barrel $ / barrel

FY24 FY25 FY24 FY25

● High refinery runs and inventory in US and seasonal ● Recovery in demand for naphtha supported the
patterns of lower demand have pressured the naphtha cracks and led to compression of Gasoline-
gasoline cracks Naphtha spread

17
Crude - Dubai Gasoline - 92 RON Singapore Naphtha - Singapore
 Pharmaceuticals

Key Products: Market Update:

PNCB, MDCB & Fluorinated
Compounds ● Pharma market in India continues to grow at 8-9% per annum
● API imports to India grew by 13% in Q1 FY25 on account of lower prices from
China
● US Biosecure Act expected to create positive traction for Indian pharma
companies
9% ● PAP market has witnessed slowdown due to significant pricing pressure
Revenue Share¹ (~50% price drop in 1 year)
● Overcapacity in fluoro-intermediates in China has impacted prices in the
Indian market
1%
Exports¹ Business Highlights:

● Focus on increasing domestic market share of PNCB in downstream PAP

market
● Exploring export markets and additional end applications for Aarti’s product
99%
portfolio to enhance volumes
Domestic¹ ● Focus on cost improvement efforts to increase competitiveness vs Chinese
suppliers

18
1 H1 FY25
 Polymer and additives

Key Products: Market Update:

PDCB, MPDA, ONA ● AIL intermediates are used in automotives, industrial applications, medical
devices, electrical and electronics, heat resistant polymers
● End-markets growing at about 5-7% per annum
● US consumers deferring new vehicle purchases; Fed rate cut impact will take
time
13% ● China has ADD² on PPS³ (downstream product of PDCB) from US, Japan
Revenue Share¹ since 2020. Tariffs imposed on Chinese EVs by US, EU, Canada. Brazil
implemented overall EV import tariffs, set to increase further

85%
Exports¹ Business Highlights:

● Target geographies US, Europe, Japan. Push on increasing market shares in

US and Japan
● Focusing on developing new markets for plasticizer additives
15% ● Typically operates in 1-3 year contracts; regular renewals
Domestic¹ ● RM variations are typically passed through on a quarterly basis
● Long term contract #2 is performing well

19
1 H1 FY25 2 Anti Dumping Duty 3 Polyphenylene Sulfide resin
Long term contracts (1/2)
Contract Details Current Status

● 10 year supply contract for Agrochemical ● Capacity currently under utilised;

Contract 1 intermediates; cancelled in June 2020 ● Precursor capacities being utilised for other
● Compensation of ~ $120 mn received products; new products under development to
FY18 improve utilisation further
during FY21 & FY22

● 20 year supply contract for speciality

chemical intermediates ($1,540 mn ● Currently plant operating at full capacity.
Contract 2 ● As per the contract terms, EBITDA is protected
revenue potential over contract period)
FY18 ● Capital Employed met from Long term and not linked with volumes
customer advances

● 10 year supply contract for a new ● Currently operating as per contract terms
Contract 3 speciality chemical intermediate jointly ● Expected to ramp-up to peak levels in FY27
FY19 developed by AIL and Customer
● Revenue potential (over contract period): $
125mn

20
Long term contracts (2/2)
Contract Details Current Status

● 9 year supply contract for an agchem ● Currently volumes as per contract terms and
intermediate (Revenue potential ₹ 3000 under ramp-up
Contract 4
crs over contract period) ● Volumes expected to peak in FY26 inline with
FY24 ● Product is part of AIL’s existing product capacity expansion
portfolio

● 4 year supply contract for a niche specialty

● Month-on-month volatility driven by end use
chemical (Revenue potential of ₹6,000 crs
Contract 5 market volatility
over contract period)
FY24 ● Product is part of AIL’s existing product
portfolio

● 20 year sourcing contract with for ● Currently operating as per contract terms
Contract 6
purchase of Nitric Acid. ● Provides Supply security for one of the key RMs
FY23 ● Mitigates AIL’s supply risk of a key RM

21
 Index

Company overview

Q2FY25 and H1 25 Highlights

Future Outlook and Roadmap

An excerpt from Aarti Mural that adorns the facade of

our Vadodara Office
 Key EBITDA Growth Drivers in near term (H2FY25 - FY28)

Switching to BPT¹ to improve Cogen

Cost Renewable Power phase 2

Optimisation
Waste energy streams utilization, ETP cost optimisation

Fixed cost optimization

₹ 150-200 Cr
Yield improvement

Acid, DCB & NCB ramp-up

Volume and
margin Ethylation & NT volume ramp-up post commissioning
Ramp-up
₹ 300-450 Cr MMA volume ramp-up
₹ 350-550 Cr
Fluorination and Speciality Chemicals ramp-up

Pilot commissioned to fuel NPD²

CAPEX led
growth MPP comm.³ MPP ramp-up

₹ 350-500 Cr Zone 4 comm.³ Zone 4 ramp-up

₹ 300-450 Cr
UPL JV comm3 Ramp-up

1 BPT: Back Pressure Turbine 2 NPD: New Product Development 3 Commissioning 23

 Long term growth focus areas - seed investments for growth beyond 3 years

Leveraging R&D and tech for asset light growth

● Have built significant R&D and technical capability which allows us to develop
new chemistries
● Plan to leverage asset-light tolling / outsourcing model for early
commercialization of these new chemistries

New Growth Avenues

leveraging AIL’s core Exploring strategic alliances
strengths ● 5+ projects of different chemistries under various phases of discussion e.g.,
● Sustainable ○ Backward integration of existing polymer base molecule
manufacturing ○ Intermediate for end use in Personal care
● R&D ○ Polymerization project for end use in oil additives
● Customer
Relationships

Early bets on sunrise sectors

● Strategic Partnerships / Potential Joint Ventures in the fields of
● Sustainability / Circularity / Chemical recycling
● Electronic chemicals
● Speciality chemistries in battery material and others
24
 Growth Outlook

Core EBITDA
Contract-1 Cancellation
Projected Annual EBITDA
Consistent volume growth over 3 yrs
1800-2200
driven by increased capacities

Operating leverages and cost

optimisation initiatives to drive EBITDA
1089
growth beyond volume growth
600
984
Capex for FY25 estimated to be ₹ 1300-
1000-1050 1500 Cr vs the earlier estimate of ₹
1500-1800 Cr.
583
Capex for FY26 estimated to be around
450
₹ 1000 Cr.

Target EBITDA range of ₹ 1800-2200 Cr

in 3 years; Debt/EBITDA of <2.5x and
ROCE of >15%

₹ Cr 25
 Certifications

The certifications listed above may be applicable to only some manufacturing units of Aarti Industries 26
 Education & Skill Tribal & Rural Other CSR
Development Development Initiatives

₹ 775.32 ₹ 147.30 ₹ 30.36

lakhs lakhs lakhs

CSR
Interventions:
Empowering Healthcare Livelihood
Opportunities
Women
Empowerment
Communities & Housing Aid
₹ 164.83 ₹ 134 ₹ 65.50
lakhs lakhs lakhs

Environment &
Water Conservation
₹ 121.14
lakhs
 Thank You

+91 22 67976666

investorrelations@aarti-industries.com