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Strides Pharma Science in its consolidated financial results for the Q4 FY23 has recorded sales of Rs. 990.4 crore, up by 14% QoQ and YoY and a 20% increase YoY. The company in its annual sales of 12 months for FY23 registered at Rs. 3,704.2 crore which was a 20% increase YoY.
The notable Q4 FY23 highlights were gross margins at 59.5%, up 868bps YoY, returning closer to the historical peak of 60%. The EBITDA at Rs. 159.6 crore, a 33% sequential increase was according to it’s best quarters on an absolute number basis. The adjusted PAT was at Rs 34.1 crore. The company said that reported PAT is excluding share of loss of its joint venture and associates and exceptional items. The Board has recommended a dividend of Rs. 1.5 per share
In the 12 months highlights, the company’s gross margins stood at 56.1%. This according to the company was its absolute gross margin increase of Rs 485 crore in FY23. The EBITDA was at Rs. 446 crore, an increase of Rs. 441.8 crore over FY22 EBITDA. The adjusted PAT of Rs. 71.4 crore; reported PAT impacted by one-time impairment at Stelis mainly related to Sputnik.
The company said that its US business sales at $232 million was an all-time high. It increased 58% YoY from $157 million in FY22. Other regulated markets reported its highest sales at $157 million growing 12% YoY.
Arun Kumar, founder, executive chairperson & managing director, said, “We are pleased to conclude FY23 on an encouraging note. The stated plan to return to growth, enhance profitability, and reduce debt has made significant headway. From FY22 to FY23, our total revenues increased by 20%, aided by performance in regulated markets. The US market, led by new product introductions and solid base performance, generated its highest-ever revenue of $232 million with significant margin expansion, in line with the management outlook. The other regulated markets also performed well throughout the year and reported their highest sales. The front-end markets in the United Kingdom and the Nordics performed as anticipated, and the B2B markets grew further due to our renewed focus from the beginning of the year. On the operational front, we are delighted to announce that the US FDA has recently reclassified our Puducherry facility, giving all of our manufacturing sites a clear compliance status by the agency.
On the bottom line, we saw an improvement in gross margin of 463 basis points for the year with an increase in EBITDA margin of 1190 basis points to 12.0%. The fourth quarter saw our exit EBITDA margins rise to 16.1% from 5.3% in the corresponding period last fiscal year. With the receipt of Arrotex proceeds and cash from operations, our total gross debt has reduced in FY23, and net debt to Q4FY23. Annualized EBITDA was at 3.4x, nearing the targeted net debt to EBITDA of under 3x. We are confident in continuing FY23's growth momentum and are on track to continuously improve the quality of our earnings while strengthening our balance sheet in FY24,” he added.
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