FDC Limited , a prominent player in the pharmaceutical sector, has released its financial results for the quarter ended June 30, 2020, showcasing resilience in the face of COVID-19 challenges. Despite a decline in revenue, the company reported significant growth in profitability, highlighting its ability to navigate through the pandemic-induced market disruptions.

Financial Highlights

FDC Limited reported a 10.29% year-on-year decline in operating revenues, which stood at ₹308.18 crore for the quarter. The company attributed this decrease to the impact of the COVID-19 pandemic and subsequent lockdown measures implemented across the country.

Profitability Boost

Despite the revenue setback, FDC Limited demonstrated strong profitability metrics:

• EBITDA surged by 49.05% to ₹131.55 crore
• Profit After Tax (PAT) grew by an impressive 63.14% to ₹91.72 crore
• Earnings Per Share (EPS) increased by 66.46% to ₹5.36

These figures underscore the company's effective cost management strategies and operational efficiency during challenging times.

Segment Performance

The company's performance across different segments revealed mixed results:

India Market

Sales of branded formulations in the domestic market, which constitutes 75.67% of total sales, declined by 13.66% to ₹231.43 crore.

Export Formulations

This segment saw a marginal decline of 3.01%, with sales reaching ₹59.26 crore.

Export API

Notably, this segment bucked the trend with a significant growth of 36.36%, recording sales of ₹15.28 crore.

Strategic Focus and Future Outlook

FDC Limited emphasized its focus on export orders and cost control measures during the quarter, which likely contributed to the improved profitability despite revenue challenges.

Looking ahead, the company has outlined two key initiatives:

1. Launch of Favipiravir in India for COVID-19 treatment, aligning with the current healthcare needs.
2. Introduction of Olopatadine ophthalmic solution in the US market, potentially opening new revenue streams.

These strategic moves indicate FDC Limited's proactive approach to market opportunities and its commitment to expanding its product portfolio in both domestic and international markets.

In conclusion, while FDC Limited faced revenue headwinds due to the pandemic, its robust profitability growth and strategic initiatives position the company well for recovery and future growth in the evolving pharmaceutical landscape.

FDC Limited , a prominent pharmaceutical company, has announced its unaudited financial results for the first quarter ended June 30, 2023, along with several key corporate decisions that are set to impact its shareholders and organizational structure.

Strong Financial Performance

The company reported robust standalone financial results for Q1 FY2024:

These figures demonstrate FDC Limited's solid performance in the pharmaceutical sector during the quarter.

Share Buyback Announcement

In a move that's likely to be welcomed by shareholders, FDC Limited's board has approved a share buyback program:

• Number of shares to be repurchased: 31 lakh equity shares
• Buyback price: Rs. 500 per share
• Total buyback value: Rs. 155 crores
• Percentage of paid-up capital: 1.87%

The record date for the buyback has been set for August 25, 2023. This initiative underscores the company's confidence in its financial position and its commitment to enhancing shareholder value.

Leadership Continuity

The board has also approved the reappointment of three key directors, ensuring leadership stability:

1. Ms. Nomita R. Chandavarkar - Reappointed as Non-Executive Non-Independent Director
2. Mr. Mohan A. Chandavarkar - Reappointed as Managing Director
3. Mr. Nandan M. Chandavarkar - Reappointed as Joint Managing Director

All reappointments are for a five-year term, subject to shareholder approval at the upcoming general meeting.

Strategic Subsidiary Acquisition

In a strategic move to consolidate its international operations, FDC Limited has approved the acquisition of an additional 7% stake in its subsidiary, Fair Deal Corporation Pharmaceutical SA. This acquisition will transform the subsidiary into a wholly-owned entity of FDC Limited, potentially streamlining operations and enhancing control over its international business.

These developments collectively paint a picture of a company that is financially strong, focused on shareholder returns, committed to leadership continuity, and strategically expanding its global footprint.