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Pharmaceuticals company Solara Active Pharma Sciences announced Q1FY25 results:
- Solara reports an improved Q1FY25 performance with a Revenue of Rs 3,641 million with a growth of 21% QoQ and 3% YoY
- Adjusted EBITDA at Rs 502 million with a growth of 33% QoQ and 151% YoY
- Reported EBITDA at Rs 421 million with a growth of 276% QoQ and 111% YoY
- Company reaffirms FY25 guidance of Revenue ~Rs 15,000 million & the full year EBITDA ~Rs 2,300 to 2,600 million with Q4FY25 exit quarter Revenue ~ Rs 4,000 million & EBITDA of ~Rs 800 to Rs 900 million (EBITDA margins of 20-22%)
- During the quarter, Gross debt reduced from Rs 9,994 million to Rs 8,333 million; a reduction of Rs 1,661 million partly from the Rights issue and balance from Operations
- Partly paid-up Rights issue was fully subscribed during the quarter
- Company has strong focus on course correction measures including right sizing of inventory, free cash generation, cost optimization and improved gross margins.
- Our Net Debt to EBITDA guidance is ~3 times by Q4FY25. The Company is confident of beating the Net Debt to EBITDA guidance.
- Manish Gupta joins Solara Board as a Non-Executive Non-Independent Director
Commenting on the financial performance, Poorvank Purohit, MD & CEO of the Company, remarked, “We are pleased with the course correction measures initiated for the Company, leading to favorable outcomes for Q1 with much improved EBITDA margins. We see growth both on a QoQ and YoY basis.
The Company reports an improved performance in Q1FY25 with Q-o-Q Revenue growth of 21% and Reported EBITDA growth of 276%. Adjusted for the one-off costs which will not continue in H2’25, our Adjusted EBITDA stands at Rs 502 million with EBITDA margins of 13.8%. Our Regulated market revenues have reached its historical levels of around 75% of total revenues. Our Gross margins are slightly depressed but this is more on account of aggressive inventory reduction to improve our free cash generation and will normalize in H2’25.
While we report an improved Q1 performance, we are confident that our ongoing actions on improving profitability through cost improvement programs, operating cost optimization, enhancing R&D productivity, optimizing working capital and debt will yield benefits in the coming quarters. Another important highlight for the quarter was our partly paid-up Rights issue which was fully subscribed during the quarter. Furthermore, during the quarter, we reduced our debt from Rs 9,994 million to Rs 8,333 million; a reduction of Rs 1,661 million.
We reaffirm our FY’25 guidance of Revenue of ~Rs 15,000 million & the full year EBITDA of ~Rs 2,300 to Rs 2,600 million & Q4FY25 exit quarter Revenue ~Rs 4,000 million & EBITDA of ~Rs 800 to Rs 900 million with EBITDA margins of 20-22%”
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