In This Article:
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Revenue: $75 million in the US, 17% growth in H1.
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EBITDA: INR236 crores for the quarter, INR452 crores for H1.
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Net Debt: INR1,902 crores, reduced by INR133 crores in H1.
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Gross Margin: Slight reduction due to growth in access market.
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Cash Flow from Operations: INR418 crores in H1.
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Capex Spend: INR92 crores in H1.
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Net Debt to EBITDA Ratio: 2.18%.
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Return on Capital Employed (ROCE): Improved to 17.2% from 12.28% in FY24.
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Effective Tax Rate: 17%, expected to remain 17%-20% for FY25.
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Commercialized Products: Increased to 71, with new product approvals.
Release Date: October 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Strides Pharma Science Ltd (BOM:532531) reported its highest ever EBITDA at INR236 crores, indicating strong financial performance.
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The company has successfully relaunched products from the dormant portfolio acquired from Endo, significantly improving US revenues.
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Strides Pharma Science Ltd (BOM:532531) has increased its commercialized products to 71, with new product approvals contributing to growth.
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The company is on track to meet its guidance, with revenues trending strongly at 17% growth.
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Strides Pharma Science Ltd (BOM:532531) has reduced its net debt to INR1902 crores, showing effective debt management and operational efficiencies.
Negative Points
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There was a slight reduction in gross margin due to the growth of the access market, which is a low-margin segment.
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The growth in other regulated markets, particularly continental Europe, has been slower than expected.
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The company faces delays in product launches in Europe due to longer-than-anticipated partner action times.
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Strides Pharma Science Ltd (BOM:532531) is currently investing heavily in new markets like Africa and MENA, which may take time to yield returns.
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The company's net interest costs are impacted by interest income on tax refunds, which may not be sustainable in the long term.
Q & A Highlights
Q: Can you provide an update on the verified launch and expected commercial launch timeline? A: All approvals for Europe are in place, and we expect the launch to happen within this financial year, specifically in Q4.
Q: Regarding the contract project in animal health for a biologic, when can we expect commercial revenue, and is additional capex required? A: This project is more like a 3 to 5-year commercialization timeline, but we will have significant R&D income during that period. We might need some capex, but it will fit within the $100 million range indicated for capex to reach $400 million in revenues.