Strides Board of Directors approved the scheme of amalgamation for merger of Vivimed Life Sciences, a wholly-owned subsidiary. According to the company, simplification of the group structure by consolidation of entities with similar functions within the group is the rationale for amalgamation. Strides aims to achieve operational and administrative efficiencies, optimum utilisation of infrastructure facilities and resources, reduction in costs through focused operational efforts,and elimination of duplication.
The company also reported highest-ever EBITDA of Rs 168.6 crore in Q1FY24 from Rs 65.7 crore clocked in Q1FY23 driven by cost optimisation. Even sequentially, EBITDA expanded 3.4x from 48.8 crore in Q4FY23. The BSE statement indicated that free cash generation led to reduction of net debt Rs 67.8 crore.
The Q1 however revenue and PAT came in flat. The pharma company’s Q1 revenue came in at Rs 932 crore from Rs 945.7 cr in Q1FY23, down 1% YoY. According to the company’s statement to the bourses, the significant optimisation of operating costs resulted in improved operating leverage and key businesses delivered steady performance, cost control measures yielding results.
The company is confident that levers in place to deliver a strong performance in FY24 with improved profitability and a stronger balance sheet. Arun Kumar, Founder, Managing Director, and Executive Chairperson, said, “We are on track to achieve the targets we set out for FY24 at the beginning of this year on all financial parameters. The growth is driven by disciplined approach on product launches and sustainable market share on existing products. We are confident of sustaining the momentum in performance driven by continuous improvement in the quality of business and delivering a strong cash generation going forward.”