Shares of Emcure Pharma jumped 6 per cent at Rs 1523.80 a piece on the BSE after the company reported a strong second quarter earnings for the financial year 2024-25 (Q2FY25).
Emcure Pharmaceuticals reported a 38.2 per cent year-on-year (Y-o-Y) increase in net profit for the quarter ending September 30, 2024, reaching Rs. 202 crore, compared to Rs. 145.8 crore in the same period last year. The company’s revenue grew by 20.4 per cent Y-o-Y, rising to Rs. 2,002 crore from Rs. 1,663 crore in Q2 of the previous fiscal year.
The company’s earnings before interest, tax, depreciation and amortisation (Ebitda) increased by 15.7 per cent, reaching Rs. 380.8 crore, up from Rs. 329 crore in the corresponding quarter of the previous year. However, the Ebitda margin saw a slight contraction, dropping to 19 per cent from 19.8 per cent last year.
Despite the margin decline, the company saw strong growth in both revenue and profit, highlighting solid operational performance.
Emcure’s CEO and Managing Director, Satish Mehta, mentioned, “Moving forward, we aim to enhance the margins by leveraging operating efficiencies, while continuing to drive strong growth in both Indian and international markets through new product launches and market share gains.”
Emcure’s international sales saw a robust 25 per cent growth Y-o-Y, with a quarterly growth of 18 per cent. The Canadian business stood out with a 51 per cent Y-o-Y growth, driven by strong performances from Emcure’s core business and its subsidiary, Mantra. In Europe, the company achieved a steady growth of 6 per cent, supported by growth in its base business.
The company’s domestic sales grew by over 15 per cent to Rs. 933 crore, driven by a consistent performance in its core business and bolstered by a distribution agreement with Sanofi.
The company has a total market capitalisation of Rs 27,419.26 crore. At 10:45 AM; the stock of the company almost gave up all its gains, rising 0.94 per cent at Rs 1,450.85 a piece. By comparison, the BSE Sensex was down by 0.07 per cent at 79,486.92.
The article originally appeared on Business Standard.
