Strides Pharma Science Ltd shares surged nearly 5% on Thursday after the company announced that it has availed credit facility for its step-down subsidiary in South Africa.
The pharma company, in a stock exchange filing, said its step-down subsidiary Trinity Pharma Proprietary Ltd has availed credit facility from Investec for Business, a division of Investec Bank Limited, South Africa, for their working capital requirements.
Trinity Pharma has secured a total of ZAR 70 million (approx. ₹31.5 crore) borrowing, the company informed bourses.
In order to facilitate the said borrowing of Trinity, Strides group entities have provided support in the form of corporate garantee/letter of support, in favour of Investec, the company said.
The credit facility will largely be used for manufacturing and trading of Strides SA products.
Strides Pharma Asia Pte. Ltd., Singapore (SPAPL) is the holding company for Trinity and holds 51.76% stake in Trinity.
Strides Pharma reported a net loss of ₹131.3 crore in the July to September (Q2FY24) compared to ₹22.8 crore in the year-ago quarter. However, the company reported 11.4% growth in revenue year-on-year at ₹999.4 crore in Q2FY24 as against ₹897 crore in the same quarter the preceding fiscal.
Its earnings before interest, taxes, depreciation and amortisation (EBITDA) for the September quarter surged 56.2% to ₹153.1 crore from ₹98 crore in the year-ago period. The operating margin improved to 15.3% in the period under review from 10.9% in the same quarter a year ago.
Shares of Strides Pharma Science Ltd were trading 3.14% higher ₹594.6 apiece on BSE at 1:23PM.
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