Pharmaceuticals company RPG Life Sciences announced Q2FY24 & H1FY24 results:
Financial Performance:
- Revenue from operations for Q2FY24 grew by 14% YoY and 4% QoQ, reaching Rs 153.58 crore.
- Revenue from operations for H1FY24 grew by 14% YoY, reaching Rs 301.36 crore.
- PBT (Profit Before Tax) for Q2FY24 grew by 29% YoY and 17% QoQ.
- PBT for H1FY24 grew by 29% YoY.
- EBITDA margins improved from 23.0% to 25.5% YoY and QoQ.
- The company remained debt-free during this period.
Domestic Formulations Business:
- The domestic formulations business, the largest contributor to the company's revenue, performed strongly.
- The business recorded robust growth in value and volume, surpassing the market growth consistently.
- Legacy brands, supported by a comprehensive life cycle management program, achieved healthy growth and became bigger brands.
- The new product portfolio in newer and progressive segments is shaping new therapies and expanding the company's product offerings.
- Foray into Rheumatology strengthened the company's Specialty segment.
- MABs portfolio posted robust performance.
- Salesforce productivity continued to register healthy upward momentum.
International Formulations Business:
- The international formulations business showed robust growth, emerging as another growth driver for the company.
- The business registered substantial growth in both sales and profits.
API Business:
- The API (Active Pharmaceutical Ingredients) business recorded healthy growth and margin improvement.
Future Plans and Initiatives:
- The company is investing in plant modernization and capacity expansion for both formulations and API.
- Focus is on building a healthy product pipeline to accelerate exports.
- Cost efficiencies in operations and sales hygiene are consistently improving margins.
- Implementation of the Transformation Agenda is on track to achieve strategic goals.
Yugal Sikri, Managing Director, RPG Life Sciences, said, “In Q2FY24, the overall performance of the Company continued to be strong. Revenue and PBT grew by 14% and 29% respectively YoY. EBITDA margin retained its 5-year long upward trajectory growing from 23.0% to 25.5% YoY. The Company continues to remain debt-free.
Domestic Formulations business, the biggest contributor to the Company's business, recorded robust growth both in value and volume - significantly and consistently ahead of the market. While our comprehensive life cycle management program for legacy brands is helping them register healthy growth and become bigger brands, our new product portfolio comprising of newer and progressive segments is also shaping new therapies and product portfolio. Our foray into Rheumatology has strengthened our Specialty segment. Our MABs portfolio is continuing to post robust performance. Salesforce productivity continues to register healthy upward momentum.
International Formulations business has also shown robust growth while emerging as another growth driver for the Company, registering healthy growth in both sales and profits. API business also registered healthy growth and improvement in margin. The Company is investing in plant modernization and capacity expansion in both plants as well as working on building a healthy product pipeline to accelerate exports of both formulations and API. Our relentless focus on achieving cost efficiencies in our operations, and eye on sales hygiene, is helping us to consistently improve our margins. We are well on course to implement our Transformation Agenda to achieve our strategic goals."