homemarket NewsStrides Pharma sees Q2 net loss of ₹131 cr due to exceptional expenses; co on track to meet FY24 outlook

Strides Pharma sees Q2 net loss of ₹131 cr due to exceptional expenses; co on track to meet FY24 outlook

Strides Pharma achieved its highest-ever reported revenue and EBITDA. The company is also on track to achieve the FY24 outlook on all financial parameters.

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By Meghna Sen  Oct 30, 2023 1:16:06 PM IST (Updated)

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Strides Pharma sees Q2 net loss of ₹131 cr due to exceptional expenses; co on track to meet FY24 outlook
Strides Pharma on Monday, October 30, reported better-than-expected results in the July to September (Q2FY24) period on margins front. The pharma company posted a net loss of ₹131.3 crore in the second quarter as against a profit of ₹22.8 crore in the year-ago period. The company also posted an exceptional loss of ₹165 crore for the quarter as against a gain of ₹14.5 crore in the corresponding quarter of last year.

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The pharmaceutical company's revenue stood at ₹999.4 crore, up 11.4% year-on-year. The company reported ₹897 crore revenue in the same quarter last year.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter rose 56.2% to ₹153.1 crore, compared to ₹98 crore a year ago. The operating margin expanded to 15.3 in July-September as against 10.9% in the base period.
Strides Pharma is on track to achieve the FY24 outlook on all financial parameters. "Levers are in place to deliver a strong performance in FY24 with improved profitability and a stronger balance sheet," the company said.
"We are pleased to report a strong Q2FY24, delivering YoY revenue growth of 21% and achieving our highest ever reported revenue and EBITDA. We remained focused on delivering consistent operating performance. We are on track to achieve the outlook we set out for FY24 at the beginning of this year on all financial parameters," said Founder, Executive Chairperson and Managing Director, Arun Kumar.
"Revenues crossed ₹1000 crores in Q2FY24, a first time milestone for the company. A disciplined approach to product launches and sustainable market share on existing products and seeding new geographies will ensure we continue to grow from the base we have established for ourselves," Kumar said.
Kumar remains confident of sustaining the momentum in performance driven by continuous improvement in the quality of business and delivering on all financial parameters.
FY23 Net debt to EBITDA of the company stood at 5.3 times, as of the first half of FY24 improved to 3.3 times. "With our EBITDA trending towards higher end of the outlook, we are currently on course to meet Net Debt to EBITDA target less than 3 times in FY24."
The pharma company has also allotted 5,350 equity shares of face value of Rs 10 each to the eligible employees who have exercised their stock options under Strides ESOP 2016 Plan.
These shares shall rank in pari passu with the existing equity shares of the company in all respects, it said in a filing.

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