Indoco Remedies (INDOCO) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 consolidated revenue was ₹3,946 million, down from ₹4,652 million in the same quarter last year, mainly due to supply constraints in the International Formulation business.

• Celebrated 77 years of operations, with strong growth in key domestic brands and new product launches in India, despite a challenging quarter for international business.

• Domestic Formulation business showed strong performance, partially offsetting international headwinds.

• International business faced supply constraints due to plant upgrades and FDA remediation, impacting US and Europe revenues.

• Received US FDA approval for Lofexidine tablets with 180 days exclusivity and WHO approval for albendazole tablets.

Financial highlights

• Net revenues for Q2 FY25 were INR 3,946 million, showing muted sequential growth from INR 3,942 million.

• Standalone Q2 FY25 revenue from operations: ₹39,458 lakhs, compared to ₹46,524 lakhs in Q2 FY24.

• Standalone Q2 FY25 net profit: ₹1,279 lakhs, down from ₹3,314 lakhs in Q2 FY24.

• EBITDA margin declined to 13.4% (INR 529 million) from 15.6% (INR 724 million) year-over-year.

• EPS for the quarter was INR 1.39, compared to INR 3.59/3.60 year-over-year.

Outlook and guidance

• Q3 expected to remain constrained due to ongoing plant upgrades; improvement anticipated from Q4 as upgrades complete.

• Structured shutdowns at some manufacturing sites are expected to improve efficiency and address supply constraints impacting international sales.

• Management refrained from providing specific future guidance, preferring to wait another quarter for clarity.