Strides Pharma Posts Record Q2 Growth with Rs 12,011 Million Revenue, Highest Ever US Sales

Written By :  Farhat Nasim
Published On 2024-10-25 09:33 GMT   |   Update On 2024-10-25 09:33 GMT
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Bengaluru: Strides Pharma Science Ltd. reported robust Q2FY25 financial results, ending September 30, 2024, with consolidated revenues at Rs 12,011 million, marking a 17% year-on-year (YoY) increase, fueled by record revenue in the US market and enhanced operational efficiency.

The company’s gross margin stood at Rs 7,032 million, marking a 15.6% YoY rise, with the gross margin percentage at 58.5%. Earnings before interest, taxes, depreciation, and amortization (EBITDA) saw a notable 31% YoY increase, reaching Rs 2,358 million with an EBITDA margin of 19.6%, an improvement of 209 basis points (bps) from the previous year.

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Strides reported an Adjusted Profit After Tax (PAT) of Rs 1,103 million, a substantial jump from Rs 405 million in Q2FY24. The reported PAT for the quarter was Rs 937 million, with earnings per share (EPS) at Rs 10.1 and an adjusted EPS of Rs 12.0.

The company’s US business achieved its highest-ever quarterly revenue of USD 75 million, marking a 26.2% YoY growth. Strides attributed this achievement to the successful launch of new products, which significantly contributed to sustained growth across all markets.

Arun Kumar, Founder & Executive Chairperson, and Badree Komandur, MD & Group CEO, commented on the performance and said “We continue to deliver on the momentum built over several preceding quarters and delivered another strong quarter. Q2FY25 demonstrated sustained growth across all markets fueled by new product launches. US operations reported highest ever quarterly revenue of USD 75m in Q2FY25. Strong YoY improvement in absolute EBITDA and EBITDA margin reflects our continued focus on operational efficiency and profitability."
Significant highlights of the quarter were

1. Sustainability Initiatives: Strides released its first Sustainability Report, reinforcing its commitment to sustainable, environmentally responsible business practices and adherence to ESG (Environmental, Social, and Governance) standards.

2. Major Fundraising Milestone: The company secured a USD 95 million investment commitment from top-tier investors for OneSource, its new business initiative, valuing it at an 82% premium over its prior valuation and creating a value of around INR 61,000 million (approximately USD 725 million) for Strides’ shareholders.

Strides, a global pharmaceutical company headquartered in Bengaluru, India, mainly operates in the regulated markets and has an “in Africa for Africa” strategy and an institutional business to service donor-funded markets. The Company’s global manufacturing sites are located in India (Chennai, Puducherry, and two locations in Bengaluru), Italy (Milan), Kenya (Nairobi), and the United States (New York). The Company focuses on “difficult to manufacture” products sold in over 100 countries.
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