Supriya Lifescience Ltd Q1 FY23 Result Updates. Robust revenue growth driven by strong sales from Anestetic segment.

Supriya Lifescience Ltd Q1 FY23 Result Updates.
Robust revenue growth driven by strong sales from Anestetic segment.

Supriya Lifescience Ltd reported a net profit of Rs. 25.2 crores, increased by 227.27% YoY from Rs. 7.7 crores and fell by 45.45% QoQ from Rs. 46.2 crores. .46% in Q1FY23.
The company reported revenue of Rs. 103.7 crores , up by 31.43% YoY from Rs. 78.9 crores and declined by 43.98% QoQ from Rs. 185.1 crores. The growth was mainly driven by strong sales from Analgesic/Anestetic segment which contributed 51% to the topline against 15% in same period last year. Overall delay in the raw material supplies and export shipments lowered the revenue on QoQ basis, China being key markets for Anti-histamine therapeutic segment. SLL’s top 12 products contributed around 70% of the revenue. Export markets contributed 82.90% of the revenue against 53.50% in the same period last year.

Increase in the cost of solvents weighed on the EBITDA margins during the quarter.

Earnings before interest, tax depreciation, and amortization (EBITDA) in Q1FY23 stood at Rs. 33.7 crores and increased by 92.91% YoY from Rs. 17.4 crores but dipped on QoQ basis by 57.44% from Rs. 79 crores. The operating profit margin improved by 1,035 bps YoY and was impacted QoQ which came at 32. Increase in the cost of solvents weighed on the EBITDA margins during the quarter. Net profit margin came at 24.30%, up 1,454bps YoY and down marginally by 66bps on QoQ basis. Growth in the regulated markets came at 106% YoY mainly supported by European region. SLL’s ability to register products in regulated market could help deliver decent topline while maintaining steady margins in the coming quarters.

The shares of Supriya Lifescience Ltd are trading at Rs. 360.40, down by 1.84%.

Valuations:

The return on equity (ROE) is 34.3% for the quarter ended June 2022. The price-to-earning (P/E) ratio stood at 17. The return on capital employed (ROCE) for the company is 43.1%. The price to book value of Supriya Lifescience Ltd is 4.72. The EV/EBITDA is 11.3. EPS during the quarter came at Rs. 3.14 vs Rs. 0.96 in the same period last year.