For the full year, the expected topline growth would be around 10 percent and the bottom line should be up by 15-20 percent in FY18Venkat Jasti, Chairman, and CEO, Suven Life Sciences.
Suven Life Sciences reported a 19.5 percent increase in net profit to Rs 31.74 crore for the second quarter ended September 30 versus Rs 26.55 crore for the same quarter last fiscal.
However, the total income during the quarter under review declined to Rs 119.99 crore, as against Rs 122.30 crore in the corresponding period last fiscal.
The year on year (YoY) revenues were down 7.5 percent at Rs 107 crore vesus Rs 115.6 crore but EBITDA was up 22 percent at Rs 45 crore versus Rs 37 crore YoY.
Throwing more light on the quarterly performance and outlook going forward, Venkat Jasti, Chairman and CEO, Suven Life Sciences said the decline in Speciality chemicals impacted the revenues but the product mix aided our margins.
EBITDA margins at 35-40 percent are sustainable in FY18.
CRAMS vertical posted a flat number around Rs 230 crore in Q2 but the asset allocation was up 25 percent. So, would this mean more capacity and post better numbers. Jasti said increase in capacity would take another 9-12 months and the results of that will be visible in FY19-20.
For the full year, the expected topline growth would be around 10 percent on back of decline in speciality chemicals business but the bottomline should be up by 15-20 percent in FY18, said Jasti.
He said SUVN-502 is under proof-of-concept stage and expect to complete the study only by early 2019.
Suven Life Sciences, in the business of design, manufacture and supply of Bulk Actives, Drug Intermediates & Fine Chemicals, catering to the needs of global Life Science Industry, is committed to provide customers with products fulfilling customer's needs and expectations.
