Strides Pharma Q3 Results: Stock surges 10% after Co maintains US biz outlook, margins expand

Shares of Strides Pharma Ltd. gained as much as 10% on Friday, January 30, in response to its December quarter results.

US sales for the company stood at $70 million, nearly the same figure of $73 million during the same quarter last year. The company has also reiterated its US business revenue outlook of $400 million by financial year 2028.

For the December quarter, Strides Pharma reported a net profit of ₹202 crore from ₹88 crore during the same quarter last year.

Revenue for the quarter stood at ₹1,194.6 crore, 3.6% higher than the ₹1,153.6 crore during the year-ago period.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter grew by 12.2% year-on-year to ₹235.8 crore, while margins expanded by 150 basis points to 19.7% from 18.2% last year.

Gross margins for the quarter expanded by 280 basis points from last year to 61.2%.

Revenue for the Growth Markets increased by 19% from last year to $16.6 million led mainly by the Africa business. For other regulated markets, Strides expects expansion of the product portfolio and new customer acquisitions to drive growth, along with continued momentum in filings, which will contribute to the medium-term prospects.

Badree Komandur, Strides Pharma's MD & CEO said that other regulated markets and growth markets contributed to the growth during the ongoing the quarter.

Strides has also appointed Peter Hardwick as the CEO of its North America business.

Shares of Strides Pharma are now trading 9.4% higher after the earnings announcement at ₹886. The stock is up 30% in the last 12 months.