Vimta Labs Released Q1 FY25 Results: PAT Margin Stood at 14.9%

Vimta Labs, a leading Contract Research and Testing Organisation (CRO) in India, announced its financial results for the quarter ended June 30, 2024, on July 17, 2024. The company delivered a positive performance, showcasing healthy revenue and profitability margins.

Key Financial Highlights

Total Income: ₹824 million, reflecting a stable revenue stream for the quarter.

Profitability

EBITDA: ₹252 million, with an impressive EBITDA margin of 30.6%, indicating efficient operations and cost management.

Profit Before Tax (PBT): ₹165 million, demonstrating strong profitability.

Profit After Tax (PAT): ₹123 million, translating to a PAT margin of 14.9%, highlighting the company’s ability to convert revenue into sustainable profits.

Basic Earnings Per Share (EPS): ₹ 5.5, indicating healthy shareholder value creation.

Financial Strength

Debt: Well-managed debt position with a total debt of only ₹130 million as of June 30, 2024.

Liquidity: Strong liquidity position with cash and cash equivalents standing at ₹324 million as of June 30, 2024.

Capital Expenditure (Capex): Q1 FY25 Capex spending of ₹164 million signifies ongoing investment in growth initiatives.

Debt-to-equity ratio: Notably low debt-to-equity ratio of 0.04x, indicating a financially conservative approach and a healthy balance sheet.

Commenting on results, Ms Harita Vasireddi, Managing Director, Vimta Labs Limited, said, “We are pleased to report stable business momentum with encouraging QoQ sales growth and stable EBITDA margins. Despite a challenging internal and external environment, we achieved a QoQ growth in sales, driven by Pharmaceutical services, which demonstrated sustained growth, albeit slightly tempered by the other services.

Looking ahead, we are pleased to share that our new Life Sciences facility expansion will become operational in Q2 of this financial year. This facility is expected to play a significant role in driving our growth in the coming quarters. We remain optimistic about the future and are dedicated to fostering sustainable growth.”

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