Shares of Emcure Pharmaceuticals soared close to 6 percent higher, coming at a kissing distance to its record high of Rs 1,580 on November 8 as investors cheered for the company's strong earnings performance for the July-September quarter.
The drugmaker's net profit was up over 38 percent on year in Q2 at Rs 202 crore, as against Rs 146 crore in the same period of the previous fiscal. The profit growth was aided by an over 20 percent jump in revenue to Rs 2,002 crore in Q2.
The quarter saw robust year-on-year growth across segments, with international businesses up 25 percent. The Canadian market showcased a 51 percent increase, driven by strong gains in the core business and subsidiary Mantra. The Rest of World markets grew 29 percent, benefiting from both ARV and Non-ARV segments.
Key focus areas showed strong traction, with Europe posting steady growth of 6 percent due to base business expansion. Emcure’s domestic business rose over 15 percent to Rs 933 crore, supported by solid base business performance and the Sanofi distribution agreement.
However, operational performance slightly weakened in the quarter as EBITDA margin dropped 80 basis points on year to 20.8 percent in Q2.
At 09.25 am, shares of Emcure Pharma were trading at Rs 1,492 on the NSE, slightly off it opening highs of Rs 1,525.
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“Emcure witnessed a strong performance in Q2. We have made significant investments in both our International and Domestic businesses over the past 2 years and the benefits of these efforts are starting to particularly reflect in the growth of our International business," Satish Mehta, CEO and Managing Director, Emcure Pharmaceuticals said in an exchange filing.
"Our recent inorganic additions – Sanofi partnership in India and Mantra acquisition in Canada – are now fully integrated and our focus is now on deriving both revenue and operational synergies. Moving forward, we aim to enhance the margins by leveraging operating efficiencies, while continuing to drive strong growth in both Indian and International markets through new product launches and market share gains,” Mehta added.
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