Q1 2025 Solara Active Pharma Sciences Ltd Earnings Call Transcript
Key Points
- The rights issue was oversubscribed, indicating strong shareholder support.
- Significant reduction in debt by INR160 crores, with a target to bring it under INR500 crores by year-end.
- Improved cash flow generation through inventory reduction and free cash generation.
- Revenue guidance for the full year is strong, expected to be in the range of INR1,400 crores to INR1,500 crores.
- EBITDA margins have improved, with a quarterly revenue growth of 21% and reported EBITDA growth of 76%.
- Gross margins are slightly depressed due to inventory reduction strategies.
- The company is undergoing retrofitting of facilities, which may impact short-term operations.
- There is a significant amount of debt still remaining, even after reduction efforts.
- The company is facing low utilization and network capacity issues.
- Pricing pressures in the market have led to reduced prices for some products.
(inaudible) is now being recorded.
mainly because part of our network optimization, and you would have probably seen in our deck that was released today. We have mothballed our buyback facility and (technical difficulty) we are retrofitting that into a completely new opportunity (technical difficulty) that we are pursuing (technical difficulty) expect that in our current nature the difference between adjustment EBITDA and reported EBITDA is almost the same. It's just one line item related to certain operating cost that we are incurring, both in R&D and in our plant operations.
We also thank our shareholders for the overwhelming support and subscription to our rights issue, which was oversubscribed. Consequent to that and a key focus for the company has been to right-size our balance sheet into our working capital cycle times and cash flows, and a lot of that has been achieved already. We have used up significant opening inventories through our
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