Solara Active Pharma Sciences announced Q2FY23 results: Q2FY23: Q2FY23 demonstrates improved gross margin performance of the base business Quarterly revenues stood at Rs 3,421million, with reported EBITDA at Rs 300 million Gross margin at 44.2% in Q2FY23 vs 41.6% in Q1FY23 Regulated markets back to >60% of the total revenues Vizag facility receives CEP for Ibuprofen manufacturing, commercial production to commence in Q3FY23 with European supplies starting from FY24 Significant operational initiatives introduced to improve profitability, on track for a bounce back in H2FY23 Jitesh Devendra, Managing Director of the Company, remarked, “We are upbeat about the growth prospects of Solara. Our Q2 improved performance has played out as per our plan with our actions on CIP programs, new market extensions, new product filings, and focus on building the CRAMS business which will yield the results from the second half of this fiscal year. With the approval of Ibuprofen DMF from CDE China for our Puducherry site and Ibuprofen CEP from EDQM for our Vizag site, we believe we are the only Company to offer Ibuprofen from two manufacturing locations. We continue strengthening our position on Ibuprofen and its derivatives while adding new customers and markets for our other key Products. Overall, we remain on the right track to deliver a strong recovery.” Result PDF
Solara Active Pharma Sciences announced Q1FY23 results: Q1FY2323 demonstrates a steady start as the base business starts to regain traction Quarterly Revenues stood at Rs 3,371m with reported EBITDA at Rs 181m Regulated markets back to >60% of the total revenues leading to improved gross margins Significant operational initiatives introduced to improve profitability, on track for a bounce back in H2FY23 Commenting on the financial performance, Jitesh Devendra, the Managing Director of the Company, remarked, “Coming from a challenging fiscal, we had a steady start to the year. While our business continue to witness headwinds, our course correction strategy is now in action. Our first 100 days of the year have primarily been focused on bringing back the momentum we had on customer centricity by better networking, rekindling the R&D; focus, and adding even more products under the cost improvement basket. We have been selective in the business and have focused mainly on the products that are more relevant for the longer playout of our plan. Consequently, our Q1’23 performance aligns with our expectations for the base business (ex-Vizag). While we have not seen the historical peak demand, the off-take for our main products is improving each month, and we continue to see green shoots. The Vizag strategy is playing to plan, and our focus is to get the site approved by the authorities at the earliest. Q1 developments give us confidence that the company is on the recovery path, and we are well on course with a stronger bounce back in the second half of FY23. Our next 100-day priority will be to continue building on the actions that we have initiated in Q1 and intense focus on getting into growth, improving our cashflows, and strengthening the balance sheet.” Result PDF
Conference Call with Solara Active Pharma Sciences Management and Analysts on Q4FY22 Performance and Outlook. Listen to the full earnings transcript.
Solara Active Pharma Sciences declares Q4FY22 result: Q4’22 performance on the expected lines, Revenues stood at Rs 3,669m, a 249% growth over Q3’22 Reported EBITDA at 4.8% while the adjusted operating EBITDA at 19.7%, demonstrating a return towards the historical run rate for the base business Board decides not to go ahead with the proposed merger with Aurore, to enable the company’s focus on its core competency and organic growth Jitesh Devendra, Former CEO and Managing Director (MD) of the Company returns to Solara as MD, to steer the reset strategy of the Company Commenting on the financial performance, Jitesh Devendra, the newly appointed MD of the Company, remarked “Coming from a challenging quarter, our Q4’22 performance has been on the expected lines. We reported Rs 3,669m of revenues in the quarter, reflecting >90% of our historical revenues. While our reported EBITDA margins were at 4.8%, adjusting for the inventory changes and Vizag under recovery, our Operating EBITDA now tracks at 19.7%, demonstrating a return to normalcy for the Company. We have also seen positive trends across our businesses viz. Ibuprofens, Non-Ibuprofen Base business and CRAMS. While there was a situational impact on Ibuprofen revenues, the order book trends for the business remained healthy. Our actions in strategic areas of developing the non-Ibuprofen product portfolio, CRAMS business, and new customer addition have yielded favorable results. From an operational standpoint, we continue to focus on developing new products and market extension filings, which can be serviced from the currently under-utilized multi-product facility at Vizag. We are also making good headway in implementing Continuous Improvement Programs, leading to better utilization and cost savings. As we navigate through the shortterm challenges of our business, we are optimistic about accelerating all the levers of our strategy. We are confident to deliver long-term value to our stakeholders.” Result PDF