By: IPP Bureau
Last updated : August 10, 2021 11:14 am
This robust performance is a testimony of the company's agility, resilience and strong execution capabilities during these difficult times
SMS Pharmaceuticals Limited Q1 FY22 revenue from operations stood at Rs.163 crore as against Rs.112.9 crores, up 44.4% YoY whereas PAT stood at Rs. 23.6 crores, up 152.7%.
API segment contributed approximately 93% to the consolidated revenue. Within the API segment, the anti-retroviral therapeutic category contributed around 43%, anti-viral around 15%, anti-epileptic around 11%, anti-migraine around 9%, anti-erectile dysfunction around 6% and the rest contributed around 16% to total API sales.
Commenting on the results P. Vamsi Krishna, Executive Director - SMS Pharmaceuticals Limited said, "Despite facing multiple 2nd wave of COVID-19 challenges, the company registered a robust revenue growth of 44.4% on YoY basis, driven by strong volume growth. This robust performance is a testimony of the company's agility, resilience and strong execution capabilities during these difficult times."
"Over the years, as a strategy, the company has focused on backward integration and maintaining the leadership position in the top therapeutic areas - anti-ulcer, ARV and anti-migraine. As a result, the company did not witness the adverse impact of higher raw material prices and supply chain disruptions on the margins. Continuous efforts to invest in backward integration has reduced import dependency on China for raw materials and KSMs to a great extent. This coupled with China+1 strategy, is expected to drive growth in exports significantly, going forward," commented Krishna.
"The company has incurred a capex of Rs.198 crore in FY21. This capex was aimed towards capacity expansion at the Vizag plant. This capacity expansion will commercialize fully by the end of FY22 and is expected to drive the next leg of growth. The growth trajectory in the API segment is expected to accelerate further in the upcoming quarters underpinned by the company's leadership position in top therapies, strong demand and pick-up in the exports business," said Krishna.
The company continues to penetrate international geographies further with more focus on margin lucrative therapies. The company is expected to continue its growth trajectory driven by robust demand, excellent operational execution capabilities and capacity expansion," added Krishna.