Strides Pharma posts Rs 140 crore profit before tax for September quarter

Riding on strong growth from regulated markets, pharmaceutical major Strides Pharma Science posted robust profit-before-tax (PBT) of Rs 140.43 crore for the second quarter ended September 30. It had posted a loss of Rs 10.80 crore in the corresponding period of the previous fiscal.

The firm reported a net profit of Rs 141.91 crore for Q2. It had posted a loss of Rs 8.70 crore for the corresponding period of FY19. “This quarter’s financial results validate our reset strategy, with enhanced focus on growth and margin opportunities from regulated markets,” said Arun Kumar, group chief executive officer and managing director, Strides Pharma Science.

These markets now contribute to over 85 per cent of firm’s revenues, establishing the strength of its operating model built around diversified markets and selected product portfolio, he added.

The company, however, said the challenges of institutional business and emerging markets persist, and Strides would continue to evolve on its course-corrected strategy, which would deliver positive outcomes in the near term.

Strides posted a 37 per cent growth in revenue at Rs 718 crore as compared with the previous corresponding period.

Operating margin saw a rise of 11 per cent year-on-year at 21 per cent.

The US markets, one of the biggest for the company, reported $57 million revenues despite temporary supply disruption of antacid Ranitidine. The company said it would focus on building capabilities in sterile injectables with incremental $40 million investments over the next 24 months for a controlling stake in Stelis Biopharma.