Profit before tax increased by 7.04% to Rs 105.40 crore as on 30 September 2023 as against with Rs 98.47 crore posted in same period a year ago.

EBITDA fell 1.9% to Rs 98 crore during the quarter as against Rs 99.90 crore reported in Q2 FY23. EBITDA margin improved to 42.4% in Q2 FY24 as compared to 35.9% recorded in the corresponding quarter previous year.

Revenue from Pharma CDMO business stood at Rs 148.3 crore in Q2 FY24, up 36.81% as compared with Rs 108.4 crore in Q2 FY23.

Specialty chemical CDMO business declined 63.7% YoY to Rs 55 crore in Q2 FY24, decline primarily led by global supply chain destocking. And the formulation and other services segment has grown well on a lower basis.

Revenue from formulation business jumped 50.54% YoY to Rs 27.7 crore in Q2 FY24 from 18.4 crore in Q2 FY23.

On half yearly basis, the company’s consolidated net profit increased 11.45% YoY to Rs 200.15 crore in Q2 FY24. Revenue from operations declined 6.25% to Rs 578.60 crore in H1 FY24 over H1 FY23.

Suven Pharmaceuticals generated operating cash flow of Rs 252 crore in H1 FY24. The company’s total cash including the investments and cash & cash equivalents on books stood at Rs 714 crore as of H1 FY24.

Dr V Prasada Raju, managing director, SPL, said, “Q2 revenues have been soft due to inventory de-stocking globally in Specialty chemicals. However, in H1 FY24, we have maintained healthy EBITDA margins of 46% and grown PAT by 11%, driven by continued momentum on Pharma CDMO. We are excited about the medium to long term growth opportunities Suven has and with the team we have onboarded we are confident of accelerating growth. We are committed to continued rigour on ESG & Quality and to being the partner of choice for our customers.”

Dr Sudhir Kumar Singh, CEO, SPL, said, “I am pleased to share that we have initiated building out the commercial engine, already hired key leaders for US and EU markets and are in the process of building the team below them. Our focus is to continue scaling existing business and share of wallet with our key customers, while also on winning new business. We are seeing positive signs basis initial customer discussions. We have seen record number of RFQs in Q2 FY24 that is encouraging for our medium-term pipeline.”

Suven Pharmaceuticals is in the business of Contract Development & Manufacturing Organisation (CDMO), catering to the needs of global pharma industry.