Aether Industries jumps 6% after executing strategic supply agreement with Baker Hughes

Under the agreement, Aether Industries will undertake contract manufacturing of six products. The products will be manufactured by the firm in India for the first time and will be supplied to global locations of Baker Hughes. A significant supply will be dedicated for Indian domestic oil and gas applications, it said.

Most of the products will be manufactured by the company’s wholly-owned subsidiary, Aether Speciality Chemicals, the firm stated while adding that it has installed the required plants, machinery, and assets for contract manufacturing of the products.

Aether Industries recently invested an additional ₹99.99 crore into its subsidiary, Aether Specialty Chemicals. The subsidiary issued 50,200 shares with a face value of ₹10 each at a security premium of ₹19,910. Aether Specialty Chemicals commenced operations in March 2024 and reported a turnover of ₹2.5 crore.

During the fourth quarter of fiscal year 2024, the company reported a net loss of ₹1.4 crore as compared to a net profit of ₹3.76 crore in the same period a year ago. Total income fell by 30% to ₹129.1 crore during the quarter. Earnings before interest, tax, depreciation, and amortisation (EBITDA) fell by 76% to ₹14.4 crore.

In FY24, Aether Industries reported a 36.7% year-on-year (YoY) decline in its profit to ₹82.5 crore. The total consolidated income during the year fell 4.53% YoY to ₹637.4 crore.

Shares of the company have risen by nearly 7% since the beginning of the year. The stock has lost over 11% in the last one year.