The shares of the leading pharmaceutical company gained 5 percent despite the promoter of the company offload 40 lakh equity shares in the company.
With a market capitalization of Rs 40,382.23 crore, the shares of Ipca Laboratories Ltd were trading at Rs 1,589 per share, increasing around 5 percent as compared to the previous closing price of Rs 1,516.05 apiece.
Reason for rise:-
According to the company filing, Usha M Chandurkar, a promotor of Ipca Laboratories Ltd holds 83 lakh equity shares which is equivalent to 3.27 percent of the company, as of Septmber 2024, however, on 18 Dec, she offloaded 40 lakh equity shares, representing 1.6 percent of the company, at an average price of Rs 1,501.52 per share. The value of this transaction is Rs 600.6 crore.
Financial performance:-
Analyzing the company’s financial condition, revenue ramped up by 14 percent from Rs 2,034 crore in Q2FY24 to Rs 2,355 crore in Q2FY25, during the same time frame net profit jumped by 81 percent from Rs 136 crore to Rs 246 crore.
Business Performance:-
IPCA achieved 11% growth in its domestic formulation business for Q2 FY ’25, outpacing the Indian Pharmaceutical Market’s 8% growth by 14%. Acute and chronic segments grew 12% and 17% (vs. market’s 10%). Market share rose to 2.14% from 2.04%.
Margin Guidance & Market Expansion::-
For Q2 FY25, the company reported a stand-alone EBITDA margin of 22.89%, up from 20.86% last year, and a consolidated margin of 19.10%, improved from 17.64%. Management updated its FY25 guidance, projecting consolidated margins to exceed 21%.
The company plans to launch six products in the U.S. market by FY ’25, with more expected in subsequent years. Unichem aims to introduce 5-6 new molecules in FY24.
Management Guidance:-
Revised growth projections for FY ’25 are now 9% to 10%, down from 10% to 11%. However, management remains optimistic about achieving synergies from the Unichem acquisition, expecting cost reductions in API processes and procurement benefits.
Company Profile:-
Ipca Laboratories Limited is manufacturing and marketing over 350 formulations and approximately 80 active pharmaceutical ingredients (APIs) covering various therapeutic segments. It offers APIs, such as Atenolol, Chloroquine Phosphate, Chlorthalidone, Furosemide, etc.
Written by:- Abhishek Singh
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