Conference Call with Solara Active Pharma Sciences Management and Analysts on Q4FY23 Performance and Outlook. Listen to the full earnings transcript.
Pharmaceuticals company Solara Active Pharma Sciences announced Q4FY23 & FY23 results: FY23 Revenues at Rs 14,663 million up 14% YoY; EBITDA at Rs 1,507 million up 63% YoY Q4FY23 Revenues stood at Rs 3,853 million Gross margins at 50.3% in Q4FY23 versus 47.3% in Q3FY23; QoQ Improvement in Gross margins by 300 bps Reported EBITDA at Rs 515 million, EBITDA margins at 13.4%; QoQ Improvement in EBITDA margins by 70 bps Reduction in under-recoveries at Vizag Commenting on the financial performance, Jitesh Devendra, MD of the company, remarked, “We are delighted to conclude fiscal year 23 on a positive note, having accomplished many of the goals we set for ourselves at the beginning of the year. The prior fiscal year (FY22) was a difficult one for the company, prompting the board to make several important decisions to ensure Solara returns to positive growth territory with sustained profitability. We had set forth key strategic priorities, which included resetting and concentrating the base business, restoring R&D; velocity, addressing under-recoveries at our newly commissioned Vizag site, and expanding into new products and geographies. I am pleased to report that we are trending positively toward a broad range of outcomes, and our performance in FY23, particularly the second half, is indicative of the company's efforts to rebound. Additionally, to the FY23 results, we have made major strides toward founding a strong base, yielding even greater future performance as we keep expanding. As we enter FY24, we are extremely optimistic about the business's prospects. We are confident that Solara will have another successful year. We remain committed to delivering value and thank our investors for their continued support.” Commenting on the financial performance, Poorvank Purohit, CEO of the company, remarked “I am delighted to join Solara and be part of Solara’s 3.0 growth journey. These improved financial results are a testament to the hard work and dedication of our employees and the strength of our product portfolio. Moving forward, we will continue to focus on outcomes that deliver value to all our stakeholders. The second half of Fiscal year 2023 has brought in more confidence in the fundamentals of the business. Our margins have risen, and we are working towards building new opportunities for sustainable growth.” Result PDF
Solara Active Pharma Sciences announced Q3FY23 results: Q3FY23: Quarterly Revenues stood at Rs 4,019 million, back to historical quarterly run-rate. Gross margins at 47.3% in Q3FY23 vs 44.2% in Q2FY23; QoQ Improvement in Gross margins by 308 bps. Reported EBITDA at Rs 510 million, EBITDA margins at 12.7%; QoQ Improvement in EBITDA margins by 392 bps. Reduction in under-recoveries at Vizag. Achieved positive PAT in Q3FY23. Commenting on the financial performance, Jitesh Devendra, Managing Director of the Company, remarked, “Q3FY23 is a turnaround quarter for Solara as we achieved most of the targeted goals when we embarked on the coursecorrection journey last year. We have returned to positive growth territory, and our base business is also trending to historical performance levels on the margins. While this reset journey has taken its time, on behalf of the promoters, the Board, and the management, we thank all our investors for reposing faith in the Company as we build out Solara for the future. We are on the right path of recovery. Our order book continues to improve each quarter, and cost improvement plans (CIPs) have started to deliver outcomes resulting in better profitability in the coming quarters. The investments we have made in new products since the inception of Solara are yielding results. We continue to invest in our R&D; for strengthening our generic API portfolio and CRAMS, to meet the growing demands for our existing products filed as part of increasing market share through market extensions, addressing regulatory requirements for new products. We have commenced commercial production at our Vizag facility resulting in a reduction of under-recovery. We are making good progress for regulatory accreditations for our Vizag facility first one being CEP approval for Ibuprofen. Overall, we have established a strong foundation which led to the improvements our business has shown, and we are very confident of the future ahead of us. We are pleased to announce that the Board has approved the appointment of Mr. Poorvank Purohit as Chief Executive Officer. Poorvank comes with 19+ years of strong B2B experience in both APIs and Finished dosage forms. He holds a strong, technical, commercial and management background. His experience will support Solara’s growth strategy.” Result PDF