Solara Active Pharma Sciences Ltd

Q3FY23 Quarterly Result Announced for Solara Active Pharma Sciences Ltd.

Solara Active Pharma Sciences announced Q3FY23 results:

• Q3FY23:
  • Quarterly Revenues stood at Rs 4,019 million, back to historical quarterly run-rate.
  • Gross margins at 47.3% in Q3FY23 vs 44.2% in Q2FY23; QoQ Improvement in Gross margins by 308 bps.
  • Reported EBITDA at Rs 510 million, EBITDA margins at 12.7%; QoQ Improvement in EBITDA margins by 392 bps.
  • Reduction in under-recoveries at Vizag.
  • Achieved positive PAT in Q3FY23.

Commenting on the financial performance, Jitesh Devendra, Managing Director of the Company, remarked, “Q3FY23 is a turnaround quarter for Solara as we achieved most of the targeted goals when we embarked on the coursecorrection journey last year. We have returned to positive growth territory, and our base business is also trending to historical performance levels on the margins. While this reset journey has taken its time, on behalf of the promoters, the Board, and the management, we thank all our investors for reposing faith in the Company as we build out Solara for the future.

We are on the right path of recovery. Our order book continues to improve each quarter, and cost improvement plans (CIPs) have started to deliver outcomes resulting in better profitability in the coming quarters.

The investments we have made in new products since the inception of Solara are yielding results. We continue to invest in our R&D for strengthening our generic API portfolio and CRAMS, to meet the growing demands for our existing products filed as part of increasing market share through market extensions, addressing regulatory requirements for new products.

We have commenced commercial production at our Vizag facility resulting in a reduction of under-recovery. We are making good progress for regulatory accreditations for our Vizag facility first one being CEP approval for Ibuprofen.

Overall, we have established a strong foundation which led to the improvements our business has shown, and we are very confident of the future ahead of us.

We are pleased to announce that the Board has approved the appointment of Mr. Poorvank Purohit as Chief Executive Officer. Poorvank comes with 19 years of strong B2B experience in both APIs and Finished dosage forms. He holds a strong, technical, commercial and management background. His experience will support Solara’s growth strategy.”

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