The shares of one of the leading pharmaceutical companies gained up to 11 percent after the company’s net profit and revenue increased by 140 percent and 8 percent YoY, respectively in the third quarter and announced a fundraising up to Rs 114 crores. 

With a market capitalization of Rs 1,225.34 crore, The shares of SMS Pharmaceuticals Ltd were trading at Rs 144.75 apiece, increasing around 10.67 percent as compared to the previous closing of Rs 130.80 per share. 

Looking into the company’s Performance, SMS Pharmaceuticals Ltd’s revenue decreased by 3 percent on a quarter-on-quarter basis from Rs.167 crores in Q2FY24 to Rs. 161 crores in Q3FY24. Further, revenue increased by 8 percent year on year from Rs. 149 crore in Q3FY23 to Rs. 161 crore in Q3FY24. 

SMS Pharmaceuticals Ltd’s net profit in Q3FY24 remained steady at Rs 12 crore from the previous quarter of the same year. Furthermore, net profit climbed by 140 percent annually, rising from Rs 5 crore in Q3FY23 to Rs 12 crore in Q3FY24. 

Furthermore, the Board considered and approved raising funds through the issue of convertible equity warrants to the Promoters Group by issuing up to 90 lakh warrants convertible in one or more tranches to equity shares of Rs.1 each of the Company at an issue price of Rs.127 per Warrant, totaling Rs.114.30 crore by way of preferential issue. 

The API business generates 96 percent of the company’s income. SMS Pharma offers over 40 medications across 14 therapeutic categories, including anti-diabetes, anti-ulcer, anti-migraine, ARV, antiepileptic, anti-inflammatory, and anti-erectile dysfunction. 

The firm has a global presence with around 83 percent export revenue (including considered exports) in more than 75 countries across 5 continents. – Reduce dependence on a particular country/region. 

SMS Pharmaceuticals Ltd is a diverse and integrated pharmaceutical firm with interests in active pharmaceutical ingredients (APIs) and intermediates. 

Written by:- Abhishek Singh 


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