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Pharmaceuticals company Sequent Scientific announced Q4FY24 & FY24 results:
- Highest EBITDA (pre-ESOP cost) in twelve quarters at Rs 411 million; Pre-ESOP cost EBITDA growth of 36% / 221% QoQ / YoY
- 11.4% EBITDA margin – expanded by 220 / 790 bps QoQ / YoY
- Q4FY24 Revenue 9.7% QoQ reported ( 7.5% in constant currency ) API business 39% QoQ; FY24 Revenue -3.6% YoY reported
- Growth for continuing business and post Turkey currency accounting adjustments at 6% YoY reported ( 11% in constant currency) in Q4; FY24 Revenue 1.5% YoY reported
Rajaram Narayanan, MD & CEO, said "It gives me immense satisfaction to share that our transformation program, which began late last year, has continued to deliver according to plan. In Q4FY24, the company achieved its highest EBITDA (pre-ESOP costs) in the last 12 quarters of Rs 411 million. The EBITDA margin for Q4FY24 at 11.4% is in line with our target to exit FY24 with double-digit EBITDA margins. Revenues for the quarter Q4FY24 grew sequentially at 7% in constant currency, and 2% on a reported basis. Adjusting for discontinued business units and currency accounting adjustments in Turkey, our revenues grew 6% YoY in Rs terms and 11.4% in constant currency terms, setting the base for higher growth in the coming year.
I am particularly pleased to share the strong performance delivered by our API business this quarter – 39% sequential increase in API revenues combined with sustained segment margin improvement. This is the outcome of our focus on the quality of business combined with operational excellence initiatives undertaken under Project Pragati. Our stable base of business in regulated markets has allowed us to selectively participate in promising semi-regulated markets witnessing growing volumes. During the quarter, we filed 2 new products, one each in the companion and production animal segments, the commercialization for which too is now expected to pick up. The company has also completed WHO audits and is preparing to get prequalified for WHO supplies.
Despite seasonality factors that affect the Jan-March period, our formulations geographies continued to perform well during Q4FY24, led by strong YoY growth in Europe ( 8%) and India ( 9%). The proactive pricing and portfolio actions in Turkey continue to support margin growth. Some emerging markets in North Africa and Middle East have seen currency issues, delaying execution of a few orders. We are accelerating our initiatives on margin improvement and new business development across all markets. We have already started expanding our footprint in India and should see results from mid-year.
We continue to evaluate inorganic actions for strategic growth in formulations and APIs, to support our operations and emerge as a larger participant in the growing Animal Health industry."
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