Aether Industries Limited — Earnings Release 2023

May 6, 2023

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May 6, 2023

Ref. No.: AIL/SE/14/2023-24

To,

BSE Limited

Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai-400001, MH. Scrip Code: 543534

National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai-400051, MH.

Symbol: AETHER

Dear Madam / Sir,

Subject: Press Release on Financial Results

In accordance with Regulation 30 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, the Press Release on the Financial Results for the Fourth Quarter and Financial Year ended on March 31, 2023, is enclosed herewith.

We request you to kindly take the information on your records.

Thank you.

For Aether Industries Limited

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Chitrarth Rajan Parghi

Company Secretary & Compliance Officer Mem. No.: F12563

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Encl.: As attached

CHITRARTH Digitally signed by CHITRARTH RAJAN RAJAN PARGHI Date: 2023.05.06 PARGHI 16:20:01 +05'30'

Aether Industries Limited

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Registered Office: Plot No. 8203, GIDC Sachin, Surat-394230, Gujarat, India. Phone: +91-261-6603000 || Email: info@aether.co.in || Web: www.aether.co.in II CIN: L24100GJ2013PLC073434 Factory: Plot No. 8203, Beside Shakti Distillery, Near Rajkamal Chokdi, Road No. 8, Sachin GIDC, Sachin, Surat-394230, Gujarat, India.

PAT for Aether Industries Limited in Q4-FY23 jumps by 44% compared to Q4-FY22 and by 20% in FY23 compared to FY22

Surat, May 6, 2023: Aether Industries Limited has achieved good growth in revenue and margins in Q4-FY23 compared to previous quarter of FY23 and Q4-FY22.

The first two quarters in FY23 were slow and low for the entire pharmaceutical industry, which also impacted Aether Industries. But the Company was confident to show good growth from the 3rd Quarter of FY23, due to the increase that it anticipated in CRAMS and Contract / Exclusive Manufacturing business models. The Company had also anticipated growth in Large Scale Manufacturing business model, from Q4 of FY23 by commercialisation of the Site 3.

The Company, has been able to show the growth in the revenues and margins in the 3rd Quarter and 4th Quarter of FY23 due to the growth in all the three business models.

The company’s CRAMS (Contract Research and Manufacturing Services) and Contract/ Exclusive Manufacturing business models continue to grow, as has been the trend in the past three quarters as well and the third business model, Large Scale Manufacturing, has shown improvement in Q4FY23 and is projected to grow in future as well due to demand coming back from the global Pharmaceutical Industry. Further, with the launch of 5 new molecules in this business model in Aether’s newly commissioned green-field manufacturing site (Site - 3) in Q-4 of this fiscal year, the growth of Large Scale Business Model seems to be certain for Aether Industries.

The Company has recorded a total revenue of Rs. 1,844 million in Q4 of FY23 which has grown by 10% compared to Rs. 1,705 million in Q3 of FY23 and grown by 25% YoY (compared to Q4 of FY22). Company has seen growth in all the business segment in this Q4 of FY23.

The Company earned an EBITDA of Rs. 602 million in Q4 of FY23, which has increased by 19% (compared to Q3 of FY23) and increased by 42% (compared to Q4 of FY22).

PAT of Rs. 376 million for the Company in Q4 of FY23 has grown by 44.0% (compared to Q4 of FY22, which was Rs. 260 million) and by 7% (compared to Q3 of FY23, which was Rs. 350 million).

The top line of the Company comprises of 52% Large Scale Manufacturing, 13% CRAMS, and 34% Contract / Exclusive Manufacturing business models, showing an increasing trend in revenues from the CRAMS and Contract / Exclusive Manufacturing business models.

The Revenue, EBITDA, and PAT matrix of Aether Industries, from the Financial Results of Q4 of FY23 and FY23 appear to be promising as mentioned below:

The Company’s sales mix for the twelve months from April 2022 to March 2023 comprises of Pharma 42%, Agrochemicals 35%, Multiple Applications 8%, High Performance Photography 6%, Material Science 5%, Coatings 3% and Others including Oil & Gas as 1%.

Amt in MM	Q4FY23	Q3FY23	Q o Q	Q4FY22	Y o Y	FY23	FY22	FY o FY
Revenue	1,844	1,705	8.0%	1,477	24.8%	6,676	5,970	11.8%
EBITDA	602	507	18.8%	423	42.3%	2,028	1,751	15.8%
EBITDA Margin	32.7%	29.7%		28.6%		30.4%	29.3%
PAT	376	350	7.2%	260	44.3%	1,304	1,089	19.7%
PAT Margin	20.4%	20.5%		17.6%		19.5%	18.2%

The Company's exports accounted for 69%, which include exports to SEZ and EOU units in India and Domestic Sales accounted for 31% of total sales turnover. Exports outside the geography of India accounted for 41% of the total revenue from operations for the twelve months from April 2022 to March 2023.

Major highlights for the Company during Q4 of FY23 and FY23 have been:

• The Company has started doing business in 4 new countries in this FY23.

• Business with thirteen new customers commenced, during the Q4 of FY23, across all business models.

• More than 80 Aetherians joined in Q4 of FY23, across all departments.

• Successfully concluded eight customer audits and certification audits in Q4 of FY23.

• Brick laying ceremony for the inauguration of Site 5 (at Panoli GIDC, Bharuch, Gujarat) along with Blood Donation Camp, where 706 units of blood was collected

• Commercial Production started in January 2023 at Manufacturing Site 3, where three our of the five proposed products, have been launched successfully. The other two products have also been launched in May 2023.

The Company also made below mentioned three major announcements during Quarter 4 of FY23:

1. EXPANSION OF SITE 3:

The site is adjacent to the recently commercialized Greenfield Manufacturing Site - 3 and Site-3+, which was acquired in Q3 of FY23. The said site will be termed as Manufacturing Site – 3++, as the Company will merge the same with Manufacturing Site – 3 and Site-3+ for various regulatory approvals.

The Company will manufacture 2 (two) new products (specialty chemicals and intermediates), at this Manufacturing Site – 3++. These two products are developed in Company’s in-house R&D Centre. These products will be manufactured for the first time in India, like most of our products.

2. LONG TERM SUPPLY AGREEMENT WITH OTSUKA, JAPAN:

Aether Industries Limited, executed a long-term sales and supply agreement for initially 10 years with Otsuka Chemicals Co., Ltd., Japan, thereby adding more business for two of its market leading products.

3. LOI WITH ARAMCO:

Aether Industries Limited has executed a letter of intent with Saudi Aramco Technologies Company, Saudi Arabia.

The Letter of Intent captures the preliminary terms of a detailed licensing agreement towards the manufacturing and commercialization at Aether of the ConvergeÒ polyols technology and product series, the manufacturing process for which has been previously jointly developed and validated at pre-commercial scale by Aramco and Aether.

Commenting on the results, Dr. Aman Desai, Promoter & Whole-time Director, Aether Industries, said, “ After a slow start in the first two quarters of FY23, Aether really picked up the pace in Q3 and Q4 of FY23 and has executed what it had promised by achieving good growth in Q4, which has been contributed by all our 3 business models. As we see demand improvement in the global chemical industry, we are significantly optimistic in our overall outlook. We have also recently made two major public announcements relating to Otsuka, Japan for the two products to be supplied to these Japanese company on exclusive basis and Aramco, Saudi Arabia for the Converge polyols technology, which reflect our continuous growth. We remain upbeat and positive on all our business models for future outlook. As in last two quarters, we continue to see a

significant upwards trend in inquiries, customer additions, contract renewals, and business being translated into revenues especially in the business models of CRAMS and Contract / Exclusive Manufacturing.”

About Aether Industries Ltd (www.aether.co.in) BSE: 543534; NSE: AETHER

Incorporated in 2013, Aether Industries Limited is a speciality chemical manufacturer in India focused on producing advanced intermediates and specialty chemicals involving complex and differentiated chemistry and technology core competencies. Aether’s vision is to create a niche in the global chemical industry with a creative approach towards chemistry, technology and systems leading to sustainable growth. Aether began commercial operations in the last quarter of FY-17 and stands to be one of the fastest growing specialty chemical companies in India. The company has an installed capacity of 9500 MT as on date and operates its state-of-the-art and DCS automated manufacturing facilities in Surat, Gujarat. Aether is ISO 9001: 2015, ISO 14001:2015, ISO 45001:2018, ISMS 27001:2013 and Indian GMP certified.

For more information, contact:

Faiz Nagariya Chief Financial Officer Aether Industries Ltd

Tel: +91 261 6603050 E-mail: faiz@aether.co.in

Netra Desai Account Director Concept Public Relations India Ltd

Tel: +91 9619399478 E-mail: netra@conceptpr.com

DISCLAIMER:

Certain statements that are made in the Press Release may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like significant changes in the economic environment in India and overseas, tax laws, inflation, litigation, etc. Actual results might differ substantially from those expressed or implied. Aether Industries Ltd. will not be responsible for any action taken based on such statements and discussions and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.