Strides Pharma Q4FY23 sales at Rs 9,904 million cr, up 14%Y-o-Y; loss narrows 133% YoY to Rs 9.54 cr

Its quarterly net loss stood at Rs 9.54 crore in March 2023 down 132.66% from Rs. 29.22 crore in March 2022.

Gross margins for Q4FY23 stood at an impressive 59.5%, marking an 868bps year-on-year improvement and approaching the historical peak of approximately 60%.

Gross margins demonstrate the company's focus on enhancing operational efficiency and profitability.

The company's Q4FY23 EBITDA reached Rs 1,596 million, reflecting a 33% sequential increase and positioning it among the best quarters in terms of absolute numbers.

Furthermore, EBITDA margins for the quarter stood at 16.1%, showing a positive trend towards the company's historical margins of around 20%.

Adjusted PAT for Q4FY23 was reported at Rs 341 million, highlighting the company's profitability and financial stability.

In the US market, Strides Pharma's business achieved its third consecutive quarter of revenues exceeding $60 million.

The company's other regulated markets (ORM) recorded the highest quarterly sales of $48 million in Q4FY23, showcasing its expanding footprint and market penetration.

The Board of Directors has recommended a dividend of Rs 1.5 per share, demonstrating the company's commitment to delivering value to its shareholders.

In FY23, the company achieved the highest-ever annual sales of Rs 37,042 million, representing a significant 20% year-on-year increase.

Gross margins for FY23 stood at 56.1%, resulting in an absolute increase of Rs 4,850 million compared to the previous year.

EBITDA for FY23 reached Rs 4,460 million, representing a substantial increase of Rs 4,418 million compared to FY22.

Adjusted PAT for FY23 was reported at Rs 714 million, while the reported PAT was impacted by a one-time impairment at Stelis, mainly related to Sputnik.

In the US market, Strides Pharma achieved a milestone with all-time high sales of $232 million in FY23, reflecting an impressive 58% year-on-year increase from $157 million in FY22.

Other Regulated Markets (ORM) also reported their highest sales at $157 million, showing a notable 12% year-on-year growth.

Furthermore, the company successfully closed four USFDA audits, including the lifting of the Warning Letter issued in 2019 for its Puducherry facility.