Shilpa Medicare rallies after robust Q4 results

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Shilpa Medicare surged 10.16% to Rs 452 after the drug maker’s consolidated net profit surged 277% to Rs 29.55 crore on a 63.7% jump in net sales to Rs 340.60 crore in Q4 FY22 over Q4 FY21.

Profit before tax (PBT) soared 452.4% to Rs 46.40 crore in Q4 FY22 over Q4 FY21. EBITDA surged 139% to Rs 79.2 crore in Q4 FY22 from Rs 33.1 crore registered in Q4 FY21. EBITDA margin improved to 23% in Q4 FY22 from 15% in Q4 FY21.

Total expenses were up by 47.1% yr on yr to Rs 267.99 crore within the quarter ended 31 March 2022. The price of raw materials increased 50.7% yr on yr to Rs 94.38 crore in Q4 FY22.

On full yr basis, the pharma company reported a 59% decline in net profit to Rs 60.66 crore despite of a 27.1% rise in net sales to Rs 1,145.52 crore within the financial yr ended 31 March 2022 over the financial yr ended 31 March 2021.

Commenting on the performance, Vishnukant Bhutada, managing director of Shilpa Medicare said, The healthy momentum of sales continues to construct on the back of growth in commercially launched products in key markets. The Formulations segment is recording traction in ex-US markets including across the EU, India and RoW. Now we have a beautiful portfolio of products lined up for launch that can support this growth. The declining share of CRAMS will proportionately support margin momentum through expansion in product sales.”

Commenting on unlocking value, Bhutada said, I’m pleased to announce that the Board has agreed to initiate IPO technique of Shilpa Pharma Lifesciences to unlock value of the API business and supply the requisite impetus for its growth. Additional costs towards the remedial measures for the formulations plant are impacting the margins.

He lastly added, The prevailing inflationary trends are proving to be a challenge and our effort has been to enhance efficiencies within the operation with the intention to mitigate them. Additional costs towards the remedial measures for the Formulations plant are impacting the margins. Because the product mix improves in favour of the Formulation business and thenewer initiatives of API segment, we will see a robust underlying construct up within the profile of margins going forward. We’re moving ahead with plans for biologicals with 3 products at clinical phase and tapping a really attractive segment available in the market, with limited competition andgood potential to grow. The Company is prioritizing development of world-class, latest products in multiple segments, which upon launch is prone to end in a superiorbusiness and earnings profile.

The corporate’s board really helpful a dividend of Rs 1.10 per equity share for the financial yr ended 31 March 2022.

Shilpa Medicare is a worldwide brand in manufacturing and supplying of reasonably priced API and formulation globally in several regulated markets.

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

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