Shares of Shilpa Medicare surged over 8 percent on November 14 after the company reported significant annual and sequential increases in both net profit and revenue for the quarter ended September.
At 11 AM, Shilpa Medicare's shares were trading 4 percent higher at Rs 857. The stock has seen a remarkable 177 percent gain on a year-to-date basis, vastly outperforming the Nifty 50, which has risen just over 8 percent during the same period. The stock has posted positive monthly returns consistently since June.
In Q2FY25, Shilpa Medicare's consolidated net profit jumped 28 percent sequentially and an astounding 1014 percent year-on-year to Rs 18 crore. Revenue from operations rose 17.5 percent quarter-on-quarter and 10 percent year-on-year to Rs 344 crore. Total expenses for the quarter dropped by nearly 17 percent from the previous year to Rs 311.6 crore.
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The revenue boost was attributed to robust growth in emerging markets alongside licensing success in the formulation and biologics segments, with the biologics business reporting a positive net profit for the first time.
The company's EBITDA grew 10 percent quarter-on-quarter and 46 percent year-on-year to Rs 91 crore, marking the eighth straight quarter of EBITDA growth. EBITDA margin expanded to 26 percent in Q2FY25 from 20 percent a year ago, though slightly down from 28 percent in the previous quarter.
Founded in 1987, Shilpa Medicare specialises in producing niche APIs, intermediates, and formulations, and provides contract research and manufacturing services. Its product portfolio includes injectable, oral solid, and specialized formulations, with contributions from its wholly owned subsidiary, Shilpa Therapeutics.
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