Pharmaceutical company Strides Pharma Science on Monday posted second quarter earnings for FY24 at a loss of Rs 131.34 crore in comparison to a profit of Rs 22.83 crore during the corresponding quarter of FY23. It posted revenue from operations for the quarter at Rs 999.43 crore, up 11.4 per cent as against Rs 897.10 crore during the same period last year. The company EBITDA stood at Rs 153.1 crore, up 56.2 per cent on-year. While the total income during the quarter in review was at Rs 1035.28 crore, total expenses incurred by the company during the quarter ended September 2023 stood at Rs 984.99 crore.
“We are pleased to report a strong Q2FY24. We remained focused on delivering consistent operating performance. We are on track to achieve the outlook we set out for FY24 at the beginning of this year on all financial parameters. Revenues crossed Rs 1000 crore in Q2FY24, a first time milestone for the company. A disciplined approach to product launches and sustainable market share on existing products and seeding new geographies will ensure we continue to grow from the base we have established for ourselves,” said Arun Kumar, Founder, Executive Chairperson & Managing Director.
“As part of our Reset Strategy, Network optimization was a key area of focus and with the divestment of the Singapore facility our Network optimization for Regulated markets is now complete. Products manufactured at Singapore have been successfully transferred to our Chestnut Ridge, New York facility. Closure of the transaction expected in Q3FY24, will be EPS accretive immediately and the proceeds will pare down the debt further. We are confident of sustaining the momentum in performance driven by continuous improvement in the quality of business and delivering on all financial parameters,” he added.
Region wise performance
Strides Pharma’s Q2 revenue from the US market was at Rs 499.30 crore ($61 million), up by 6 per cent as compared to Rs 469.90 crore ($57 million) during Q1FY24. It said that growth was enabled by 4 new products in H1 and sustained market share across the product portfolio. Of 60 commercial products, Strides is ranked in the top 3 in 34 products which contribute ~75 per cent of the total US revenues. In terms of business outlook, the company said that the focus remains on the fast-tracked launches from the approved basket of ANDAs (260+ active ANDAs with 230+ approvals). It further said that the calibrated portfolio expansion is expected to drive growth with 10-15 new launches annually.
Other regulated markets excluding the US posted Q2 revenue of Rs 326.90 crore ($40 million), up 14 per cent as against Q1 revenue of Rs 287.30 crore ($35 million). It said that a strong funnel for the European B2B partnerships under synergICE is expected to drive growth. In terms of business outlook, Strides Pharma said that expansion of product portfolio and new customer acquisitions will help drive sustainable growth. It further stated that conversion of existing strong funnel of new opportunities and continued momentum in filings and approvals will help fast track growth.
Growth Markets that includes Africa operations and new geographies of LATAM, MENA, CIS, APAC posted Q2FY24 revenues of Rs 111.90 crore ($14 million), higher by 44 per cent vs Q1FY24 revenue of ₹ 77.80 crore ($9 million).