Nectar Lifesciences Limited has delivered robust financial performance for the quarter ended December 31, 2024 (Q3 FY25), driven by improved margins, strong operational efficiencies, and strategic market expansions.
Key Financial Highlights for Q3 FY25:
- Revenue from operations: ₹4,543.34 million, a marginal increase compared to ₹4,521.65 million in Q3 FY24.
- EBITDA: ₹452.83 million, reflecting a 6.1% YoY growth from ₹426.71 million.
- EBITDA margin: Improved to 9.97% from 9.44% YoY.
- Profit before tax (PBT): ₹125.48 million, a substantial 411% YoY increase from ₹24.57 million.
- PBT margin: 2.76%, up from 0.54% in Q3 FY24.
- Profit after tax (PAT): ₹78.40 million, a 400% YoY increase from ₹15.67 million.
- PAT margin: Improved to 1.73% from 0.35% YoY.
Performance Drivers:
The growth in profitability was driven by an increasing share of higher-margin API and formulations exports, operational efficiencies, and cost optimization efforts. Nectar Lifesciences also benefited from strategic expansions in export markets and incremental production capabilities.
Outlook and Strategic Initiatives:
- The company plans to focus on the API and formulations business, targeting revenue growth of 7-10% in FY26.
- EBITDA for FY25 is projected at ₹175-185 crore, with a potential increase to ₹240-260 crore by FY26.
- Management aims to scale formulations revenue to over ₹600 crore by FY28, with long-term debt expected to be fully repaid by the end of FY26, significantly reducing interest costs.
The company is optimistic about sustaining profitability through rising API exports and increased demand in international markets, supported by continued investments in production capabilities and cost reduction measures.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Always conduct your own research or consult a financial advisor before making investment decisions.
