Strides Pharma Science Ltd

Q3FY23 Quarterly Result Announced for Strides Pharma Science Ltd.

Strides Pharma Science announced Q3FY23 results:

• Consolidated Q3FY23:
  • EBITDA at Rs 1,201 million, up 100% YoY, revenues at Rs 8,686 million, up 9% YoY.
  • Adjusted PAT at Rs 198 million; Reported PAT impacted by loss from JV and associates on account of inventory write off related to covid portfolio.
  • Strong performance in regulated markets business driven by growth across all key markets.
  • Regulated markets business crosses the US$ 100 million mark for the first time in quarterly revenues.
  • US Business reports its best-ever quarterly performance at US$ 63 million in revenues.
  • Other Regulated Markets returns to its historical growth trajectory with revenues at US$ 39 million.
  • Cost optimization drives gross margins expansion by ~800bps YoY to 57.7% and EBITDA margins expansion by ~1,330 bps YoY to 13.8%.   
  • Arrow transaction related Deferred consideration received during the quarter.

Arun Kumar, Founder, Managing Director, and Executive Chairperson, commented on the performance and said, “We are pleased to report continued momentum in our performance led by strong growth in the regulated markets. Our US operations delivered a strong quarterly performance driven by improved volume for the base products and healthy traction for recently launched products. We have launched ten new products so far during the financial year and expect the new launch velocity to continue in the near term. We continue to focus on a profitable outcome for the business and have, by design, let go of several low-margin businesses.  

The Other Regulated Markets business has bounced back strongly during the quarter, with growth across all markets. We continue to expand our footprint across key regulated markets outside the US through new customer acquisition and expansion of our product offering. The business continues to have strong order book visibility, and we are confident of the growth trajectory continuing for the Other Regulated Markets.  

Several of our cost initiatives, including R&D cost optimization, Alternate Vendor Development (AVD), Cost Improvement Programs (CIPs) along with a superior supply chain execution, have enabled us to deliver an improved margin performance with gross margins expanding ~800bps YoY to 57.7% and EBITDA margins expanding ~1,330 bps YoY to 13.8%. Adjusted PAT for the quarter was at Rs 198 million. however, reported PAT was impacted by loss from JV and associates on account of inventory write-off related to the covid portfolio.    

We have received the Arrow transaction-related deferred consideration towards the end of the quarter. The proceeds will be used to deleverage the balance sheet. We are focused on getting our Net Debt to EBITDA below 3x in the near term.”

Result PDF