Suven Pharma shares jump 6% after topline zooms 11% in Q2 earnings

Shares of Suven Pharmaceuticals surged up to 6.25 per cent at Rs 1,279 per share on the BSE in Wednesday’s intraday deals after the company reported its quarterly earnings for the second quarter of financial year 2024-25 (Q2FY25).

 

The drug maker reported a 3.34 per cent increase in consolidated net profit to Rs 82.21 crore for Q2FY25, driven by an 11.54 per cent rise in revenue from operations, which reached Rs 257.72 crore compared to Rs 231.91 crore in the same quarter of FY24. This growth was primarily fueled by the pharma CDMO business and the Sapala acquisition.

 

Despite the revenue increase, the company's profit before tax dropped 55.18 per cent to Rs 65.46 crore in Q2FY25, down from Rs 146.08 crore in the same period last year. 

 

Earnings before interest, tax, depreciation, and amortisation (Ebitda) grew 8.46 per cent to Rs 111.5 crore, up from Rs 102.8 crore in Q2 FY24. However, the Ebitda margin contracted slightly to 43.3 per cent in Q2FY25 from 44.5 per cent in the corresponding quarter last year.

 

Revenue from the pharma CDMO business, including Sapala, surged 46.56 per cent to Rs 202.4 crore in Q2FY25, compared to Rs 138.1 crore in Q2 FY24. Additionally, revenue from the formulation business saw a 45.65 per cent Y-o-Y jump, reaching Rs 55.2 crore for the quarter. 

 

“There is a strong momentum favouring the CDMO sector, with India as the biggest beneficiary driven by efforts to diversify supply chains, along with supportive macroeconomic trends like the potential US Biosecure Act. Suven with its strong track record and extensive offerings, continues to be committed to offering a tech-led end-to-end CDMO platform to its customers,” said Vivek Sharma, executive chairman, Suven Pharmaceuticals. 

Suven Pharmaceuticals share price history

The company’s stock has outperformed the market year to date as it has risen 72 per cent, while gaining 115 per cent in the last one year. In comparison BSE Sensex has risen 8.6 per cent year to date and 20.8 per cent in a year. 

 

The company has a total market capitalisation of Rs 31,604.24 crore. Suven Pharmaceuticals shares are trading at a price to earnings multiple of 11.59 times and at an earning per share of Rs 9.65. 

 

At 12:28 AM; the shares of the company pared some of its gains and were trading 3.14 per cent higher at Rs 1,241.50 a piece. By comparison, the BSE Sensex was down 0.64 per cent at 78,169.56 level.