Caplin Point stock zooms over 5% on robust Q1 results; bottomline grows 20%

Caplin Point Q1 impact: Shares of pharmaceutical company Caplin Point rose sharply on Wednesday, August 7, 2024. The shares rallied as much as 5.42 per cent to hit an intraday high of Rs 1,629.40 per share. 

However, at 1:07 PM, shares of Caplin Point were trading 4.17 per cent higher at Rs 1,610. In comparison, BSE Sensex was trading 0.75 per cent higher at 79,182 levels.

The surge in the stock price came after the company announced its June quarter of financial year 2025 (Q1FY25) results. 

Caplin Point’s profit (attributable to the owners), or bottomline, rose 20 per cent to Rs 124 crore in the June quarter of financial year 2025, from Rs 103.4 crore in the same quarter a year ago (Q1FY24).

The company’s revenue from operations, also known as topline surged 16 per cent year-on-year (Y-o-Y) to Rs 459 crore in the June quarter of FY25, from Rs 395.3 crore in the June quarter of FY24. 

At the operating front, earnings before interest, tax, depreciation and amortisation (Ebitda), or operating profit, soared 20 per cent annually to Rs 151.8 crore in the June quarter of FY25, from Rs 126.5 crore in the June quarter of FY24. 

Its Ebitda margin expanded 110 basis points (bps) to 33.1 per cent in Q1FY25, from 32 per cent in Q1FY24.

The board of directors have recommended a final dividend of Rs 2.5 per equity share of Rs 2 each for the financial year ended March 31, 2024, which shall be paid subject to approval of the shareholders at the forthcoming Annual General Meeting. 

The board has approved the Record Date for determining the eligibility of the Shareholders for the purpose of Final Dividend. “The same shall be communicated to the Stock Exchanges separately as per the timelines specified under the Listing Regulations,” Caplin Point said. 

Additionally, the company has approved the re-appointment of Sridhar Ganesan as managing director for a further period of two years, effective August 25, 2024.

Caplin Point Laboratories Ltd is engaged in the manufacturing and sourcing of active pharmaceutical ingredients (APIs), finished formulations, research and development (R&D), and clinical research, with a global presence spanning Latin America, Africa, the USA, and other regions.

The company boasts an extensive portfolio featuring over 4,000 registered products and more than 650 formulations across 36 therapeutic areas. Its revenue base is diversified, with minimal dependency on any single product or therapeutic segment.

Currently, approximately 83 per cent of the company's sales are generated from Latin America, a region characterised by semi-regulated or non-regulated markets that allow for easier competition entry.

Caplin Point Laboratories also operates the healthcare e-commerce portal 'QuetenX,' which serves over 1,500 unique customers in Guatemala, Nicaragua, and Ecuador.