Shares of Emcure Pharmaceuticals surged by nearly 6% on November 8, nearing the company’s record high of Rs 1,580, as investors responded positively to its robust earnings report for the July-September quarter. At around 09:25 am, the stock was trading at Rs 1,492 on the NSE, just below the opening high of Rs 1,525.
Emcure posted a net profit of Rs 202 crore for Q2 FY25, marking an impressive 38% growth from Rs 146 crore in the same quarter last year. This growth was primarily driven by a 20% increase in revenue, which reached Rs 2,002 crore. The quarter witnessed solid year-over-year gains across Emcure’s key business segments, with the international markets experiencing notable expansion.
The company’s international operations saw a 25% jump, with the Canadian segment leading the way with a significant 51% increase, driven by strong results in both the core business and its subsidiary, Mantra. Additionally, the Rest of World markets grew 29%, with Antiretroviral (ARV) and Non-ARV products contributing to the uptick.
In Europe, Emcure achieved stable growth of 6%, attributed to expanding its base business. In India, the company’s domestic revenue rose over 15% to Rs 933 crore, buoyed by strong foundational performance and the positive impact of a distribution partnership with Sanofi.
The company’s operating margins declined despite the revenue and profit gains. The EBITDA margin for the quarter slipped by 80 basis points year-on-year to 20.8%, reflecting some operational headwinds.
Commenting on the quarterly performance, Satish Mehta, CEO and Managing Director of Emcure Pharmaceuticals, said, “Q2 was a strong quarter for Emcure. Over the past two years, we have invested considerably in both our International and Domestic businesses, and we are now seeing these efforts pay off, especially in our international growth.”
Mehta highlighted the company’s recent expansions, including the Sanofi partnership in India and the acquisition of Mantra in Canada, noting that these initiatives are now fully integrated. “Our focus is now on realizing revenue and operational synergies. Going forward, we are committed to enhancing margins through operating efficiencies while expanding our presence in both Indian and international markets through new product launches and increased market share,” Mehta added.
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Source: Moneycontrol
