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Strides Pharma hits 52-week high on reporting turnaround Q4 performance

22-May-24 15:14 Hrs IST

The company reported highest ever quarterly revenue of Rs 1,058.3 crore in Q4 FY24, registering a growth of 6.9% from Rs 990.4 crore recorded in Q4 FY23.

Profit before exceptional items and tax was at Rs 86.27 crore in Q4 FY24, up 109.24% from Rs 41.23 crore recorded in Q4 FY23. The company reported an exceptional loss of Rs 8.07 crore during the quarter.

The firm reported highest ever quarterly EBITDA of Rs 204 crore in Q4 FY24, registering a growth of 27.82% year on year. EBITDA margin improved to 19.3% in Q4 FY24 as compared to 16.1% recorded in the corresponding quarter previous year.

Gross margin rose 8.9% YoY to Rs 642.1 crore during the quarter. Gross margin returned to a historic high of 60.7% in Q4 FY24.

The US business achieved revenue of $65 million in Q4 FY24, up 5.5% on YoY basis.

For FY24, the pharma company's consolidated net loss narrowed to Rs 148.53 crore in FY24 as against Rs 230.90 crore posted in FY23. The company reported sales of Rs 4,055.5 crore in FY24, registering a growth of 14.4% YoY.

Arun Kumar, founder, executive chairperson & managing director, commented, ?The company achieved all its key objectives laid down in our reset strategy and has bounced back to become a strong and resilient company. In the near term, we will continue to focus on operating cash flows while investing in growth to ensure that the efforts of our Reset are balanced by improved revenue CAGR, in the coming years.

Meanwhile, the company's board has recommended a final dividend of Rs 2.50 per equity share for FY24. The dividend will be paid within 30 days from the date of shareholders' approval at the ensuing AGM of the company.

Further, the pharma company announced that its step-down wholly owned subsidiary, Strides Pharma Global, has received approval for the generic version of Sucralfate Oral Suspension from the United States Food & Drug Administration (USFDA).

The product is bioequivalent and therapeutically equivalent to the reference listed drug (RLD), Carafate of AbbVie.

Sucralfate is used to treat stomach ulcers, gastroesophageal reflux disease (GERD), radiation proctitis, and stomach inflammation and to prevent stress ulcers.

As per IQVIA March 2024 data, Sucralfate Oral Suspension has a market size of of around $124 million. The said drug will be manufactured at the company?s flagship facility in KRS Gardens in Bangalore, India.

The company has 260 cumulative ANDA filings (including the acquired portfolio from Endo at Chestnut Ridge) with USFDA, of which over 245 ANDAs have been approved. The company has set a target to launch 60 new products over three years in the US, stated in the company?s press release.

Strides Pharma Science is engaged in develops and manufactures a wide range of IP-led niche pharmaceutical products.

The scrip hit 52-week high at Rs 919.35 in today?s intraday session.