Neuland Laboratories (524558) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 achieved record total income of INR 444.4 crores, up 21.7% year-over-year, led by strong CMS business growth and healthy EBITDA margins.

• EBITDA (excluding exceptional items) was INR 128.6 crores with a margin of 28.9%, up 174 bps from Q1 FY24.

• Profit after tax was INR 98.3 crores, including an exceptional gain of INR 20.6 crores from sale of investment property.

• Free cash flow for the quarter was INR 50.9 crores; net debt position is negative at INR 110.2 crores.

• Board approved capital expenditure of INR 24.5 crores for Unit 1 expansion, funded through internal accruals.

Financial highlights

• Total income for Q1 FY25 was INR 444.4 crores, up 21.7% year-over-year and 13.8% sequentially.

• Gross margin for Q1 FY25 was 56.1%, compared to 55.2% in Q1 FY24 and 58.8% in Q4 FY24.

• PAT margin at 22.1%, up 510 bps YoY; EPS for Q1 FY25 was INR 76.6.

• Working capital cycle reduced to 107 days in Q1 FY25 from 118 days in Q1 FY24.

• Net profit for the quarter was INR 97.87 crores, up from INR 67.56 crores year-over-year.

Outlook and guidance

• FY25 expected to be a year of consolidation and normalization for revenue growth and margins, with business momentum anticipated to accelerate from FY26 as new capacities come online.

• Capacity addition of 19 KL at Unit 1 expected to be available for commercial production in 1–1.5 years to meet growing customer demand.

• Management remains optimistic about long-term growth, especially in the CMS segment.

• No specific numeric guidance provided; management emphasizes medium- to long-term confidence.