Pharmaceuticals company Strides Pharma Science announced Q1FY24 results: Reports quarterly sales of Rs 9,320 million in Q1FY24, down 1% YoY Q1FY24 gross margins at 58.7%, absolute gross margin increase of Rs 729 million YoY Consolidated EBITDA at Rs 1,686 million, up 100%+ YoY with healthy EBITDA margin expansion Significant optimization of operating costs resulted in improved operating leverage Key businesses deliver steady performance, and cost control measures yielding results 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, commented on the performance and said, “We are pleased to report a strong start to FY24, with Q1FY24 EBITDA reaching historical highs. Our focus on profitability and efficiency is witnessed in the results as we expanded EBITDA margins by 200 bps QoQ and generated strong operating cash flows. We are on track to achieve the targets we set out for FY24 at the beginning of this year on all financial parameters. The Regulated markets grew by 25% YoY with the US growing by 32% YoY and Other Regulated markets growing by 15% YoY. The growth is driven by a disciplined approach to product launches and sustainable market share on existing products. The emerging markets' performance had a slow start and is expected to gain traction during the year. 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.” Result PDF
Strides Pharma Science announced Q4FY23 & FY23 results: Q4FY23: Record quarterly sales of Rs 9,904 million in Q4FY23, up 14% QoQ and YoY Q4FY23 gross margins at 59.5%, up 868bps YoY, returning closer to the historical peak of ~60% Q4FY23 EBITDA at Rs 1,596 million, a 33% sequential increase, and among Company’s best quarters on an absolute number basis Q4FY23 EBITDA margins at 16.1%, trending positively towards the company's historical ~20% margins Q4FY23 adjusted1 PAT at Rs 341 million The US business reported third consecutive quarter of USD 60+ million in revenues Other regulated markets (ORM) recorded the highest quarterly sales of USD 48 million in Q4FY23. The Board has recommended a dividend of Rs 1.5 per share FY23: Reports highest-ever annual sales of Rs 37,042 million, a 20% increase YoY. FY23 gross margins at 56.1%, absolute gross margin increase of Rs 4,850 million in FY23 FY23 EBITDA at Rs 4,460 million, an increase of Rs 4,418 million over FY22 EBITDA. FY23 Adjusted1 PAT of Rs 714 million; reported PAT impacted by one-time impairment at Stelis mainly related to Sputnik US business sales at USD 232 million, an all-time high for Strides, increased 58% YoY from USD 157 million in FY22. Other Regulated Markets (ORM) reported its highest sales at USD 157 million, growing 12% YoY Four Successful closures of USFDA audits, including the lifting of the Warning Letter issued in 2019 for the Company’s Puducherry facility. Arun Kumar, Founder, Executive Chairperson & Managing Director, commented on the performance and said, “We are pleased to conclude FY23 on an encouraging note. The stated plan to return to growth, enhance profitability, and reduce debt has made significant headway. From FY22 to FY23, our total revenues increased by 20%, aided by performance in regulated markets. The US market, led by new product introductions and solid base performance, generated its highest-ever revenue of USD 232 million with significant margin expansion, in line with the management outlook. The other regulated markets also performed well throughout the year and reported their highest sales. The front-end markets in the United Kingdom and the Nordics performed as anticipated, and the B2B markets grew further due to our renewed focus from the beginning of the year. On the operational front, we are delighted to announce that the USFDA has recently reclassified our Puducherry facility, giving all of our manufacturing sites a clear compliance status by the agency On the bottom line, we saw an improvement in gross margin of 463 basis points for the year with an increase in EBITDA margin of 1190 basis points to 12.0%. The fourth quarter saw our exit EBITDA margins rise to 16.1% from 5.3% in the corresponding period last fiscal year. With the receipt of Arrotex proceeds and cash from operations, our total gross debt has reduced in FY23, and Net debt to Q4FY23 Annualized EBITDA was at 3.4x, nearing the targeted net debt to EBITDA of under 3x. We are confident in continuing FY23's growth momentum and are on track to continuously improve the quality of our earnings while strengthening our balance sheet in FY24.” Result PDF