Neuland Laboratories Ltd, a leading player in the pharmaceutical sector, announced its financial results for the second quarter of FY25, ending September 30, 2024. The company witnessed a decline in its quarterly performance, citing a challenging operational environment.
Key Financial Highlights
- Total Income: Neuland’s total income for Q2 FY25 stood at ₹315.2 crore, marking a 25.1% year-on-year (YoY) decrease from ₹420.8 crore in Q2 FY24. This also represents a sequential decline of 29.1% from ₹444.4 crore in Q1 FY25.
- EBITDA: EBITDA fell sharply by 53.2% YoY, amounting to ₹65.7 crore in Q2 FY25 compared to ₹140.3 crore in Q2 FY24. The EBITDA margin also dropped to 20.8% from 33.4% a year ago, indicating a decline in operational profitability.
- Profit After Tax (PAT): The PAT for Q2 FY25 stood at ₹32.0 crore, down by 64.1% from ₹89.1 crore in Q2 FY24, with the EPS also declining from ₹69.4 to ₹24.9.
Management Commentary
In the management commentary, Neuland’s leadership emphasized that the quarterly results are part of the inherent volatility in the business. They reiterated their confidence in the annual growth trajectory, driven by strategic initiatives in customer acquisition, expanding capabilities, and optimized processes.
Sucheth Davuluri, Director and CEO of Neuland Laboratories, stated, “The numbers of this quarter are subpar relative to previous quarters, yet align with our strategic vision for FY25. Our focus remains on sustainable long-term growth through robust customer acquisitions, expanded capabilities, and agile process optimization.”
Saharsh Davuluri, Vice-Chairman and Managing Director, added, “Our revenue for Q2 was supported by key molecules in the CMS and GDS segments. The completion of additional manufacturing facilities this year, coupled with new product launches, positions us strongly for significant growth in FY26.”
Strategic Outlook
Neuland Laboratories is confident about its growth trajectory in the medium to long term, as indicated by customer interest and expansion of its early-stage projects. Despite the Q2 challenges, the company is focused on leveraging new facilities and expanded manufacturing capabilities to drive growth in the coming fiscal years.
With these financial highlights, Neuland Laboratories reaffirms its commitment to enhancing operational efficiency and delivering on its long-term growth strategies in the highly competitive pharmaceutical market.
