Profit before tax dropped 55.18% to Rs 65.46 crore as on 31 December 2023 as against with Rs 146.08 crore posted in same period a year ago.

EBITDA fell 56% to Rs 651 crore during the quarter as against Rs 1,467 crore reported in Q3 FY23. EBITDA margin contracted to 30% in Q3 FY24 as compared to 41% in Q3 FY23.

Revenue from Pharma CDMO business stood at Rs 88.1 crore in Q3 FY24, down 32.85% as compared with Rs 131.2 crore in Q3 FY23.

Revenue from specialty chemical business declined 56.52% YoY to Rs 83.6 crore in Q3 FY24, decline in speciality chemical is primarily led by global supply chain destocking. The company does not anticipate any structural disruption at the Industry level.

Revenue from formulation business jumped 58.74% YoY to Rs 48.1 crore in Q3 FY24 from 30.3 crore in Q3 FY23.

On 9-months basis, the company's consolidated net profit declined 14.06% to Rs 246.910 crore on 17.77% increase in revenue from operations to Rs 798.42 crore in 9M FY24 over 9M FY23.

The pharmaceutical generated operating cash flow of Rs 280 crore in 9M FY24. The company’s total cash including the investments and cash & cash equivalents on books stood at Rs 753 crore as of 9M FY24.

Dr V Prasada Raju, managing director, SPL, said, “Our commitment to ESG and sustainability is demonstrated through launched initiatives and our target is to achieve gold rating from Eco Vadis. Despite near-term macro challenges in specialty chemicals, we maintain confidence in our medium term outlook.

Our focus on customer engagement, team building, EHS and ESG infrastructure, cost improvements, technology investments, M&A pipeline development, and efficient CAPEX project execution aligns with our priorities for the coming year, reinforcing our commitment to long-term growth and success.”

Dr Sudhir Kumar Singh, CEO, SPL, said, The RFQ pipeline and conversion are progressing well as we strive towards medium term business opportunities. Our focus lies on prioritizing strategic customer relationships, operational optimization, and fostering long-term growth. The ongoing progress of our R&D Lab, Suryapet expansion, operational capacity expansion, is consistent with our effort towards Suven plus growth trajectory.

Our business development team position us for continued success and strategic growth opportunity as several discussions on early and late-stage project engagements are ongoing. Despite near-term softness, our confidence remains strong in achieving medium-term growth."

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