Strides Pharma Q1 Results: US sales improve 7%, gross margins expand

Shares of Strides Pharma Ltd. are off the highs of the day after the drugmaker reported results for the June quarter on Tuesday, July 29.

The company reported a 7% growth in US sales for the quarter, in comparison to the same quarter last year, to $70 million.

In rupee terms, the company's revenue went up by 6.2% year-on-year to ₹1,119.7 crore.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter increased by 14.7% from the year-ago quarter to ₹217.9 crore, while margins expanded by 150 basis points to 19.5% from 18% last year.

The company reported an exceptional loss of ₹8.4 crore during the quarter, in comparison to an exceptional gain of ₹98.4 crore.

Strides also had a one-time gain of ₹3,188 crore during the quarter.

Gross margins for the quarter increased by 300 basis points from the same quarter last year to 60.3%.

"Our focus on cost management and diligent execution has enabled us to deliver robust results," said Badree Komandur, MD & Group CEO of Strides Pharma. He added that the company will enhance its R&D efforts during the year to drive sustainable, long-term growth.

Shares of Strides Pharma are trading 3.2% higher on Tuesday, after the results announcement, to trade at ₹952. The stock has gained 6% in the last one month.