Strides Pharma reports revenue of Rs 718 crore for Q2

EBITDA margins stood at 21 per cent, up by 300 basis point quarter-on-quarter and 1,170 bps year-on-year. EBITDA margin expansion was led by good performance in the regulated markets, said Strides Pharma.

Bengaluru: Strides Pharma Science on Friday reported consolidated revenues at Rs 718 crore during the July to September quarter, demonstrating a 37 per cent year-on-year growth.

In Q2 FY19, it had reported revenues at Rs 524 crore while they totalled Rs 688 crore in the first quarter of current fiscal (Q1 FY20).

The consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) totalled Rs 150 crore, up 210 per cent year-on-year and 22 per cent quarter-on-quarter.

EBITDA margins stood at 21 per cent, up by 300 basis point quarter-on-quarter and 1,170 bps year-on-year. EBITDA margin expansion was led by good performance in the regulated markets, said the company.

"This quarter's financial results validate our reset strategy, with an enhanced focus on growth and margin opportunities from regulated markets," said Group CEO and Managing Director Arun Kumar.

"These markets now contribute to over 85 per cent of our revenues, establishing the strength of our operating model built around diversified markets and carefully selected product portfolio," he said in a statement.

In spite of underperforming emerging markets and continued R&D spend, the group EBITDA margins exceeded 20 per cent for the first time in many quarters, said Kumar.

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"But the challenges of institutional business and emerging markets persist. We continue to evolve on our course-corrected strategy, which will deliver positive outcomes in the near term."

Strides Pharma Science mainly operates in the regulated markets and has an 'In Africa For Africa' strategy along with an institutional business to service donor-funded markets.

The company's global manufacturing sites are located at Bengaluru, Pondicherry and Chennai in India, Singapore, Milan in Italy, Nairobi in Kenya and Florida in the United States. It focuses on 'difficult to manufacture' products that are sold in over 100 countries.

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