In This Article:
-
Revenue Growth: 13.3% year-on-year growth at a company level.
-
EBITDA: INR 585 crore for the nine months, with a margin of 17.3%.
-
Gross Margin: 58.4% for Q3.
-
EBITDA Margin: 18.2% for Q3.
-
US Revenue: $73 million for Q3, $214 million year-to-date.
-
Net Debt: INR 1,571 crore as of December 2024.
-
Debt Reduction: INR 464 crore reduced during the nine-month period.
-
Net Debt to EBITDA Ratio: 2x.
-
Reported PAT: INR 90 crore for the quarter.
-
Reported EPS: INR 9.56 for the quarter.
-
Operational PAT: INR 232 crore for the nine months.
-
Operational EPS: INR 25.2 for the nine months.
-
Cash-to-Cash Cycle: Improved to 90 days.
-
Return on Capital Employed (ROCE): 14.7% compared to 12.8% for FY24.
-
Interest Costs: Net interest costs at INR 47 crore for the quarter.
-
Effective Tax Rate: 18% year-to-date.
Release Date: January 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Strides Pharma Science Ltd (BOM:532531) reported a strong quarter with a 13.3% year-on-year revenue growth, aligning with their guidance of 12% to 15%.
-
The company achieved an EBITDA margin of 18.2% for Q3, with a year-to-date EBITDA of INR 585 crore, indicating robust operational performance.
-
Strides successfully reduced its net debt to EBITDA ratio to under 2x, achieving this target one quarter ahead of schedule.
-
The US business is on track to meet its revenue guidance of $275 million to $290 million, with five product approvals and four launches in the quarter.
-
Strides received a strong ESG rating of 76/100 from S&P Global Corporate Sustainability assessment, outperforming industry peers in governance, social, and environmental metrics.
Negative Points
-
The company faces challenges in the other regulated markets, with only a 1.8% year-on-year growth, and anticipates a breakout in performance only in the second half of the next fiscal year.
-
Despite the strong quarter, the company acknowledges that the absolute percentage of EBITDA may not significantly increase in the near term.
-
There are potential risks related to product approvals and regulatory compliance that could impact future performance.
-
The anticipated growth in the other regulated markets has been delayed, with significant contributions expected only after 2 to 3 quarters.
-
The company is still working on optimizing its working capital cycle, which is currently at 119 days, although it is already considered best in class.
Q & A Highlights
Q: What are the expectations for overall margins going forward, considering the recent margin performance? A: Arun Kumar, Executive Chairperson, mentioned that the company has been working on improving network optimization and reducing costs. While the absolute EBITDA content is expected to increase, the percentage of EBITDA may not significantly rise from the current levels. The focus will be on delivering more free cash and reducing debt.