Aarti Drugs aims 18% margin growth; to focus on increasing market share

Aarti Drugs is aiming for a margin of 18 percent, Adhish Patil, chief financial officer (CFO), told CNBC-TV18. Patil also said that the main focus is to increase market share.

The pharma company reported a subdued set of earnings for the June-ended quarter with profit down over 40 percent and margins having contracted both on a year on year (YoY) and on quarter on quarter (QoQ).

Patil said that the margin contraction experienced by the company was due to a price hike in raw materials. He also mentioned that it is difficult to pass on the increase in input costs.

“There can be compression of margins while taking up more market share from other players, but we are not worried about that. The main thing for us always has been, that we have to get more market share because margins ultimately revert back. Therefore, we are eying around 18 percent EBITDA margin, going forward also,” said Patil.

On the PLI scheme, Patil said that the company is trying to apply under the second production-linked incentive (PLI) scheme as well.

For the entire management interview, watch the video