By: IPP Bureau
Last updated : August 06, 2024 8:45 pm
SMS Pharmaceuticals has reported total income of Rs. 165.81 crores during the quarter ended June 30, 2024
SMS Pharmaceuticals Limited (SMS Pharma), a diversified and integrated pharmaceutical company specialising in Active Pharmaceutical Ingredients (API) and complex Intermediates for global customers, announced its unaudited financial results for the quarter ended June 30, 2024.
Commenting on the performance, P. Vamsi Krishna, Executive Director said, “We have begun the financial year on a strong note, achieving strong revenue growth YoY along with improved margins, which are now at pre-COVID level. Our diversified portfolio of high-volume and high-value products is performing well. We are progressively ramping up production of ibuprofen and gaining market share in our key APIs. Our strategic focus on backward integration is progressing as planned and ongoing Capex is expected to enhance our capabilities further. Overall, the demand outlook for the industry is healthy, and we are on track to achieve revenue growth of 20% and EBITDA margin of 20% for FY25."
Performance review
Revenue from operations in Q1FY24 was Rs. 164.45 crore, up 22% YoY, due to robust growth in anti-diabetic and ibuprofen segments. Sequentially, revenue from operations was lower by 33% on account of seasonality.
Gross margins improved to 35% in Q1 FY24, up 39 bps YoY and 971 bps sequentially, primarily due to lower raw material prices and improved product mix. The EBITDA margin expanded by 104 bps YoY and 670 bps QoQ to reach 20%, driven by higher gross margins and operational efficiency. EBITDA for Q1 FY24 rose by 28% YoY to reach Rs. 33.51 crore. PAT was Rs. 16.48 crore, up 76% YoY primarily due to lower finance costs. The PAT margin improved to 10% in Q1 FY25 vs. 7% in Q1 FY24.
Project update
As part of the Rs. 150 crore capex plan, the company is scheduled to complete the backward integration of key intermediates by H1FY25 and increase production capacity by the end of Q4 FY25.
Outlook
Looking ahead, SMS Pharma remains committed to enhancing its product portfolio and meeting the evolving needs of its customers. The company reiterates its guidance of achieving revenue growth of 20% and EBITDA margin of 20% in FY25.
Established in 1990, SMS Pharmaceuticals operates two state-of-the-art manufacturing facilities in Hyderabad and Vizag, with capacities of 200 KL and 3,000 KL respectively.