Strides Pharma Science reported a net loss of Rs162.56cr in the quarter ended September 2021 as against a net profit of Rs80.95cr during the previous quarter ended September 2020.
The sales declined 9.08% to Rs721.47cr in the quarter ended September 2021 as against Rs793.56cr during the previous quarter ended September 2020.
The stock ended at Rs487.40 down by Rs16.7 or 3.31% from its previous closing of Rs504.10 on the BSE.
Commenting on the performance, Dr R Ananthanarayanan, Managing Director & CEO, remarked, “We have reported an operational breakeven in Q2FY22 enabled by a bounce back in other regulated markets, growing 27% QoQ. The performance in other regulated markets was driven by improving demand scenario and resumption of our supplies to partners during the quarter post the Covid related manufacturing disruptions in Q1. Emerging markets continues to track well delivering growth both in Africa and Institutional business. We continue to face headwinds in our US business. While we have been able to retain volume share on our key products, we continued to witness price challenges in our portfolio during the quarter, magnified by concentration towards acute products.”
“We have completed the strategic acquisition of Chestnut Ridge site in the US along with a portfolio of approved products which will enable us to accelerate new product launches. While there are near term headwinds, we remain optimistic on the US business in the long run. We will start witnessing improvement in our US business starting Q3FY22 and will continue the growth momentum there on.”
“Given the volatile dynamics we believe we will only be able to achieve our current year guided outlook for US in FY23 A muted sales performance accompanied with a drop in gross margins and relatively higher operating costs has led to a negative operating leverage in H1. While cost measures have been initiated to improve operating leverage, the shift will be visible in the coming quarters.”
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