Strides Pharma reports net profit of Rs 33 lakh in Q2
The company's cost control measures have started yielding results and have enabled strong operating leverage during the quarter, Kumar said.
New Delhi: Strides Pharma Science has reported a consolidated net profit of Rs 33 lakh for the second quarter ended September 30, 2022.
The drug maker had reported a net loss of Rs 168 crore in the July-September period of last year.
Revenue from operations rose to Rs 897 crore in the period under review as against Rs 721 crore in the year-ago period, Strides Pharma Science said in a regulatory filing.
"We continue to make good strategic progress across all our key businesses with a sharper focus on execution and cost competitiveness. We have delivered an improved sequential performance led by gross margin expansion," Strides Pharma Science Founder, Managing Director, and Executive Chairperson Arun Kumar said.
The company's cost control measures have started yielding results and have enabled strong operating leverage during the quarter, he added.
Read also: Strides successfully concludes USFDA inspection at Singapore facility
"We have completed the strategic review of the other regulated markets (ORM) business. We have decided to exit several low-margin product lines resulting in a lower top line during the quarter," Kumar said.
With all the levers in place, the company expects to continue its growth momentum in coming quarters with a focus on improved margins, free cash flow generation, and significant deleveraging of the balance sheet, targeting a net debt-to-EBITDA of less than three times, he added.
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