One of the Pharma stocks engaged in manufacturing APIs, intermediates, and formulations has surged by 6.40% after reporting September quarter results in 2024. The company’s revenue increased by 9.85 percent YOY to Rs. 343.8 crore, and net profit increased by 1042.68 percent YOY to Rs. 17.94 crore.
Stock movement
After announcing its quarterly results, Shilpa Medicare Limited‘s share has jumped by 6.40% from the previous close of Rs. 824.75. The stock opened at Rs. 830.05 and is currently trading at Rs. 877.55, with a high of Rs. 894.50 and a low of Rs. 816. The market capitalization now stands at approximately Rs. 8,581.64 crore.
Q2 FY25 Result Walkthrough
Coming into the quarterly results of Shilpa Medicare Limited, the company’s consolidated revenue from operations increased by 9.85 percent YOY, from Rs. 312.98 crore in Q2 FY24 to Rs. 343.8 crore in Q2 FY25, and grew by 16.34 percent QoQ from Rs. 295.51 crore in Q1 FY25.
The company has earned revenue from API by Rs 192.8 crore (55%), formulation by Rs. 119.6 crore (34%), biologicals by Rs. 30.7 crore (9%), and other operating income by Rs. 5.7 crore (2%) in Q2 FY25.
Further, the company’s EBITDA margin has increased from 20% in Q2 FY24 to 26% in Q2 FY25. The PAT margin has reached 5%, as compared to 1% in Q2 FY24.
In Q2 FY25, Shilpa Medicare Limited’s consolidated net profit slightly increased by 1042.68 percent YOY, reaching Rs. 17.94 crore compared to Rs. 1.57 crore during the same period last year. As compared to Q1 FY25, the net profit has increased by 27.6 percent, from Rs. 14.06 crore.
The basic earnings per share increased by 25.34% and stood at Rs 1.83 as against Rs 1.46 recorded in the previous quarter FY25.
In terms of return ratios, Shilpa Medicare Limited’s share ROE and ROCE are currently at 1.71 percent and 5.25 percent, respectively. Shilpa Medicare Limited has a debt-to-equity ratio of 0.21x, which shows the company is almost debt-free
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Management Commentary
The managing director of Shilpa Medicare Limited, Mr. Vishnukant Bhutada, highlighted that “our strategic focus on delivering innovative solutions and driving operational excellence continues to yield strong business performance.
The recent positive developments in our formulations and CDMO businesses are particularly exciting. The recent acceptance of Oxylanthanum Carbonate NDA by USFDA with a target
action date of June 25 and the recent USFDA approvals of Bortezomib are significant milestones that validate our commitment to quality, innovation, and patient care. These achievements are a testament to the hard work and dedication of our talented team.”
Strategic Product Launch
Shilpa Medicare Limited is expanding through a diverse portfolio of upcoming product launches. In the Formulation Business, the company is preparing to introduce generic Nilotinib in the EU market during Q3, targeting a market size of US$ 413 million, followed by RTU formulation of pemetrexed with both IV & SC routes scheduled for Q4 launch, addressing a US$ 96 million market opportunity.
The Transdermal Portfolio will be marked by the first EU entry with the rotigotine patch, expected in FY26, entering a US$ 350 million market currently void of generic competition. Additionally, the CDMO business is strengthening with a significant development for Unicycive Therapeutics, with an NDA target date set for June 28, 2025.
Company Overview
Shilpa Medicare Limited was established in 1987 in Raichur, Karnataka. The company is a prominent Indian pharmaceutical company, primarily engaged in the manufacturing of active pharmaceutical ingredients (APIs) and formulations. Shilpa Medicare exports its products to various regulated markets worldwide, including the USA, Europe, Japan, South Korea, Russia, and Brazil.
Written By – Nikhil Naik
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