The drug maker reported a 36.6% decline in consolidated net profit to Rs 29.22 crore on a 4.7% fall in net revenue from operations to Rs 866.02 crore in Q4 FY22 over Q4 FY21.
The company recorded a pre-tax loss of Rs 102.52 crore in Q4 FY22 as against a pre-tax profit of Rs 55.23 crore in Q4 FY21. Total expenses surged 22.2% to Rs 944.44 crore in the last quarter from Rs 772.84 crore reported in the same period last year.EBITDA slumped 71% year on year to Rs 46.1 crore in the quarter ended 31 March 2022. Meanwhile on the margins front, EBITDA margin tumbled to 5.3% in Q4 FY22 from 17.6% posted in Q4 FY21 while gross margin slipped to 50.9% in Q4 FY22 from 59.2% registered in the corresponding quarter last year.
On full year basis, the pharma company reported a consolidated net loss of Rs 460.21 crore in financial year ended 2022 as against a net profit of Rs 268.44 crore in financial year ended 2021. Revenue from operations declined 7.4% year on year to Rs 3,070.25 crore in FY22 over FY21.
Commenting on the performance, Arun Kumar, founder, executive chairperson & managing director said, FY22 has been a challenging year for the pharma industry and, particularly for Strides, given the significant headwinds. We have witnessed unusual price erosion and volume drops in the US, leading to significant compression in our gross margins. The other regulated markets delivered a tepid growth as the business was impacted in the first half of fiscal year 2022 due to covid led disruptions.
In light of the evolving business environment, we have made several changes to our businesses with a focus on growth, better cash flows and a significant debt reduction. Our growth across the market will be driven by portfolio expansion leveraging our approved portfolio and new customer acquisition for our IP‐ led B2B businesses. We will aggressively focus on the cost reduction, while one of the key actions planned for the year is to reduce our gross debt by over Rs 10 billion in FY23, which will bring our Net Debt to EBITDA below 3 times. While the operating environment continues to evolve and is ambiguous, we stay confident of a bounce‐back in FY23 to deliver significant value for our stakeholders in the coming years.
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In its future outlook, the pharmaceutical company guided for an encouraging FY23 with focus on growth, higher cashflows & reduction in debt.
Strides Pharma Science is a global pharmaceutical company. The company mainly operates in the regulated markets and has an 'in Africa for Africa' strategy along with an institutional business to service donor‐funded markets. The company focusses on difficult to manufacture products that are sold in over 100 countries.
Shares of Strides Pharma Science were trading 0.66% lower at Rs 300.70 on the BSE.
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