Suven Pharma, an integrated Contract Development and Manufacturing Operations (CDMO) company, released its second quarter earnings for the financial year 2023-24. It recorded Q2 profit at Rs 79.56 crore, up 10.4 per cent in comparison to Rs 72.06 crore during the same period last year. It posted revenue from operations at Rs 231.05 crore, down 17 per cent as against Rs 278.40 crore during the second quarter of FY23. The company EBITDA stood at Rs 98 crore with EBITDA margin of 42 per cent.
Dr V Prasada Raju, Managing Director, SPL, said, “Q2 revenues have been soft due to inventory destocking globally in Specialty chemicals. However, in H1 FY24, we have maintained healthy EBITDA margins of 46 per cent and grown PAT by 11 per cent, driven by continued momentum on Pharma CDMO. We are excited about the medium to long term growth opportunities Suven has and with the team we have onboarded we are confident of accelerating growth. We are committed to continued rigour on ESG & Quality and to being the partner of choice for our customers.”
Suven Pharma generated operating cash flow of Rs 252 crore in H1FY24. Our total cash including the investments and cash and cash equivalents on books stood at Rs 714 crore as of H1FY24.
Suven Pharma Q2 performance across business verticals
The company’s pharma CDMO business continued the growth momentum and reported growth of 24 per cent H1FY24 on-year. Revenue growth ex Covid molecule is 38 per cent in H1FY24 YoY. Specialty Chemical CDMO witnessed decline primarily led by global supply chain destocking. Formulation other services segment has grown well, on a lower base.
Appointments at Suven Pharma
Suven Pharma board of directors also approved the appointment of Pravin Rao Udhyavara Bhadya as the Independent Director and Shweta Jalan as the Non Executive Director of the company, with immediate effect.
Earlier last month, Advent International had announced a new board and management of Suven Pharma after completing the acquisition of a majority stake in the company. Suven Pharma will be led by a management team comprising Annaswamy Vaidheesh (Executive Chairman), Dr V Prasada Raju (Managing Director) and Dr Sudhir Kumar Singh (Chief Executive Office).
In terms of the Board of Directors, along with Vaidheesh and Raju, Pankaj Patwari, Managing Director at Advent, will also join the team. Suven will also have three independent directors – KG Ananthakrishnan, Ex-MD MSD India and Ex-Director General of OPPI, and Chairman of PNB; Matangi Gowrishankar, Ex-BP Global Head of Capability Development, and Ex-Director of Human resources, Castrol India, Strategic Advisor and Certified coach; Vinod Rao, former head of investor relations at Diageo and ex-CFO PepsiCo Asia Pacific.
Commenting on the first 30 days of the new management team, Annaswamy Vaidheesh, Executive Chairman, SPL, said, “Transition to the new management is completed smoothly and we feel good about the progress. We have augmented the senior leadership with a proven track record and deep experience in the space. Our team has met most customers in person; customers’ feedback has been very encouraging. Our team has also interacted with all our 1200+ employees and is focused on retention of the existing culture and ethos of the company. Overall, we are excited about our vision to rapidly scale Suven Pharma into a globally respected CDMO organization.”