Eris Lifesciences Q3 results: Profit flat at Rs 102 crore, revenue up 16%

Mumbai-Based Pharmaceutical Company, Eris Lifesciences, reported a flat profit of 0.86 per cent in their net profit year-on-year, coming to Rs 102.73 crore during Q3FY24. This modest profit growth can be attributed to a rise in financial costs during the period. The company posted a 15.70 per cent increase in its consolidated revenue from operations, which came in at Rs 483.48 crore compared to Rs 417.84 crore in the corresponding quarter of the previous year.

This quarter, Eris Lifesciences acquired a 51 per cent stake in Swiss Parenterals (SPL), a player in the sterile injectables business. The pharmaceutical company finalised a definitive agreement for the acquisition, valuing SPL at Rs 637.50 crore. Concurrently, Eris’ Promoter Group will also acquire an additional 19 per cent equity stake in SPL for Rs 237.50 crore, bringing the total combined equity stake to 70 per cent. The deal structure includes an initial payment of Rs 200 crore at closing, with the remaining amount scheduled for payment 12 months post-closure. The financial closure for this transaction is expected to be completed before March 31, 2024.

On a sequential basis, the company saw a 3.40 per cent decline in revenue along with Profit After Tax (PAT), which also declined by 16.77 per cent.

The EBITDA grew by 27.9 per cent year-on-year, reaching Rs 175.5 crore.

Commenting on the results, Amit Bakshi, Chairman and Managing Director of Eris Lifesciences stated, 'We continue to witness strong momentum, significant margin expansion, and robust cash generation in our core domestic formulation business. We have a well-diversified portfolio with our Emerging Therapies accounting for nearly 30 per cent of our revenue and growing at 28 per cent. We continue to expand our R&D programme which now has 25+ active Fixed-Dose Combination (FDC) candidates in the pipeline.'

'Our insulin business continues to scale up well with a present revenue run-rate of Rs 5 crore per month. We will continue to drive value creation through our specialty-focused strategy combined with flawless execution,' Bakshi further added.

In Q3FY24, Eris Lifesciences reported that the branded formulations segment grew by 16 per cent year-on-year. The Branded Formulations Yield Per Prescription (YPM) reached Rs 4.7 lakh in this quarter compared to Rs 4.2 lakh in the same quarter of the previous fiscal year.

This quarter, Eris MJ, the company’s insulin business, clocked in Rs 12 crore in revenue. The cumulative revenue for the first nine months of the fiscal year reached Rs 31 crore. This quarter, the company also launched two first-in-market Fixed-Dose Combinations (FDCs) from its Research and Development (R&D) block.

In the current quarter, the Parent Company also concluded the acquisition of the Branded Formulations India business units focusing on Nephrology and Dermatology from Biocon Biologics for an amount of Rs 366 crore through a slump sale. This acquisition, completed on November 9, 2023. The Parent Company is currently in the process of finalising fair values for the identified assets and liabilities as part of the Purchase Price Allocation.