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Strides Pharma reports Q4 net loss at Rs 207 cr

Business Finance

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On a consolidated basis, Strides Pharma Science reported a net loss of Rs 206.57 crore in Q4 March 2020 as against net profit of Rs 44.70 crore in Q4 March 2019.

Consolidated net sales rose 0.4% to Rs 618.64 crore in Q4 March 2020 from Rs 616.18 crore in Q4 March 2019. Pre-tax loss stood at Rs 217.86 crore in Q4 March 2020 compared with profit before tax of Rs 51.95 crore in Q4 March 2019. The result was impacted mainly on account of Ranitidine withdrawal from the US market. The Q4 result was declared post trading hours yesterday, 20 May 2020.

The reported EBITDA dropped 29% to Rs 68 crore in Q4 March 2020 as against Rs 95.30 crore in Q4 March 2019. The EBITDA margin stood at 10.9% in Q4 March 2020 as compared to 15.4% in Q4 March 2019. Net debt declined 55.41% to Rs 1,020 crore in FY20 as against Rs 2,288.50 crore in FY19.

The US business, including the sales of Ranitidine of $46 million, grew from $150 million in FY19 to $238 million, up by 61%. Ranitidine withdrawal impact of $21 million resulted in the reported US revenues of $217 million, a 47% growth over FY19. The company said it was confident on its performance in the US market, as it expects to grow its business by 25%-30% on the reset FY20 revenue of $192 million.

Commenting on the Q4 performance, Dr R Ananthanarayanan, the chief executive officer (CEO) & managing director (MD) of Strides Pharma Science, has stated that: "The financial year 2020 has met all strategic and financial outcomes for Strides in spite of the unexpected USFDA direction to withdraw Ranitidine on the last day of FY20. While we have grown our revenues by 26% (33% Adjusted), our EBITDA has grown over two times, demonstrating over 740 basis point (1,070 basis point Adjusted) improvement in the margins. We are also satisfied that the regulated markets continued its healthy track record and our US business met the upper end of our FY20 outlook, including the revenues from Ranitidine."

The board at their meeting held on Wednesday, 20 May 2020, has recommended a final dividend of at Rs 2 per equity share of Rs 10 each for the financial year ended 31 March 2020.

Strides Pharma Science is a global pharmaceutical company. It focuses on difficult to manufacture products that are sold in over 100 countries.

Shares of Strides Pharma Science advanced 1.01% to Rs 425.30 on BSE. The scrip traded in the range of Rs 402.45 to Rs 442.20 so far.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, May 21 2020. 12:28 IST