Eris Lifesciences (ERIS) Q2 24/25 earnings summary

Executive summary

• Q2 consolidated revenue reached INR 741 crores, up 47% year-over-year; H1 revenue at INR 1,461 crores, a 50% increase.

• Q2 EBITDA was INR 265 crores, up 46% year-over-year, with a margin of 35.7%.

• Net profit for Q2 declined 21% year-over-year to INR 97 crores; H1 net profit down 14% to INR 186 crores.

• Strong execution, manufacturing improvements, and fixed cost synergies drove margin expansion.

• Strategic investments and partnerships, including a 30% stake in Levim Lifetech, expanded the biotechnology footprint.

Financial highlights

• Q2 branded formulations revenue was INR 644 crores; Biocon segment INR 134 crores.

• Q2 gross margin was 74.9%, down 641 bps year-over-year due to product mix; EBITDA margin stable at 35.7%.

• Q2 operating cash flow was 119% of EBITDA; H1 at 94% of EBITDA.

• Net debt at Q2 end was INR 2,500 crores, ahead of deleveraging targets.

• Basic EPS (consolidated) for Q2 FY25 was INR 6.73, compared to INR 9.08 in Q2 FY24.

Outlook and guidance

• FY25 guidance reaffirmed: DBF revenue of INR 2,600 crores with 36% EBITDA margin; consolidated revenue of INR 3,000 crores with 35% margin.

• Swiss Parenterals expected to deliver INR 330 crores revenue with a 35% margin.

• H2 FY25 to be "new-launch heavy" with several first-in-market approvals.

• CapEx planned at INR 100-120 crores; INR 54 crore investment in Levim Biotech.

• Acquisition of Levim Lifetech expected to complete before December 31, 2024.