Suven Pharmaceuticals Q2 and H1 FY25 Results; Revenue Grows 12% YoY in Q2

Suven Pharmaceuticals Ltd, a global Contract Development and Manufacturing Organisation (CDMO), announced its Q2 and H1 FY25 financial results on November 12, 2024. 

The company achieved revenue of ₹258 crore for Q2, marking a 12% year-on-year (YoY) growth, while gross margins expanded by 473 basis points, driven by a favourable business mix and the consolidation of its recently acquired oligonucleotide segment. Adjusted EBITDA reached ₹112 crore, with an EBITDA margin of 43.3%.

Q2 Pharma CDMO Highlights

• The Pharma CDMO segment posted strong growth of 40% YoY, supported by business development efforts and favourable macro trends, leading to a robust technology-driven pipeline.

H1 FY25 Highlights

• Adjusted EBITDA and adjusted PAT margins stood at 40.7% and 31.3%, respectively.
• Suven generated a free cash flow of ₹110 crore and held a cash and bank balance of ₹656 crore.
• Capital expenditure for H1 FY25 was ₹69.4 crore.

Strategic and Operational Developments

• Pipeline and Business Expansion: Suven’s Phase III pipeline added a new molecule, and one of the Phase III trials showed positive results.
• Increase in RFQs: Requests for Quotations (RFQs) grew by 2.2 times compared to H1 FY24, featuring a balanced mix of lateral and tech-led projects and a broader customer base.
• Spec-Chem/Ag-Chem Transition: The company continues to transition the Spec-Chem/Ag-Chem business into a Strategic Business Unit (SBU). Although macroeconomic pressures have stabilised, early signs of recovery are evident.
• Oligonucleotide Business Expansion: Suven is focused on leveraging cross-selling opportunities within the oligonucleotide business to strengthen customer relationships.

Suven expects to meet its full-year growth projections, with accelerated growth anticipated from FY26 onward.

Mr Vivek Sharma, Executive Chairman, said, “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 its customers a tech-led end-to-end CDMO platform.”

On November 13, 2024, Suven Pharmaceuticals share price opened at ₹1,220.00, touching the day high of ₹1,269.75 as of 10:08 AM on NSE.

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