Strides Pharma Science (STAR) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenue reached ₹10,875 million, up 16.7% year-over-year, with all business segments exceeding expectations and guidance.

• Net profit after tax from continuing operations was ₹683 million, a significant turnaround from a loss in Q1 FY24.

• Business reset initiated in FY23 is now complete, with a stronger balance sheet and significant free cash generation.

• Leadership transition executed smoothly, with new CEO and CFO promoted from within, ensuring continuity.

• Focus remains on profitability, efficiency, digitization, and sustainable growth, with metrics-driven governance across functions.

Financial highlights

• Q1 EBITDA reached ₹2,170 million, achieving a 20% margin after 12 quarters.

• Adjusted PAT grew 2.8x year-over-year to ₹839 million; reported PAT at ₹683 million, best ever quarterly PAT.

• Cash flow from operations was ₹1,550 million, supporting debt reduction and growth CapEx.

• Gross margin stood at 61.3%, among industry leaders.

• Basic EPS for continuing operations was ₹7.64, up from a loss of ₹0.79 in Q1 FY24.

Outlook and guidance

• Confident in meeting FY25 guidance, with U.S. business expected to reach $285–$300 million.

• FY25 revenue expected to grow 12–15% YoY, with H2FY25 driving growth via global launches.

• EBITDA margin guidance maintained at 20–22%; aiming for ₹9,500m–₹10,000m EBITDA.

• Net debt-to-EBITDA targeted below 2x by year-end.

• Effective tax rate expected to remain in the 17–20% range for FY25.