Godavari Biorefineries has reported mixed financial results for Q1, showing revenue growth but continuing losses, albeit with some improvements in key metrics.

Financial Performance Overview

Godavari Biorefineries Limited reported total income of Rs. 534.00 crores for Q1, up from Rs. 525.30 crores in the same quarter of the previous year, representing a modest increase of about 1.7%. The company's revenue from operations reached Rs. 533.20 crores.

EBITDA Improvement

The company achieved a positive EBITDA of Rs. 6.50 crores compared to negative Rs. 9.50 crores in the previous year quarter. This represents a significant turnaround in operational performance. The EBITDA margin improved to 1.2% from -1.8% year-over-year.

Narrowed Losses

Despite the improvements in EBITDA, the company recorded a loss after tax of Rs. 16.00 crores. However, this loss was lower than the Rs. 26.10 crores loss reported in the same quarter of the previous year, indicating progress towards reducing losses.

Segment Performance

The Bio-Based Chemicals segment showed strong performance with 43% year-on-year EBITDA growth. Ethanol production increased to 26,057 KL from 25,082 KL in the previous year, demonstrating growth in this key area.

Progress in Drug Discovery

The company has made significant strides in its drug discovery efforts:

• European patent validation for an anti-cancer molecule
• Received a patent from China for another anti-cancer compound

Management Commentary

CMD Samir Somaiya attributed the performance to the company's resilience despite seasonal business segments. He highlighted the restoration of the Ethanol Blending Program and upcoming grain-based ethanol capacity as key growth drivers for the future.

Financial Performance Table

While Godavari Biorefineries has shown improvements in several key areas, including EBITDA and reduced losses, the company continues to face challenges in achieving profitability. The growth in revenue and improvements in operational efficiency suggest that the company's strategies are having a positive impact, but further efforts may be needed to turn the company profitable in the coming quarters.

Godavari Biorefineries Limited (BSE: 544279 | NSE: GODAVARIB) has achieved a significant milestone in its pharmaceutical endeavors by securing a patent in China for a novel anti-cancer molecule. This development marks a crucial step in the company's expansion of its intellectual property portfolio within the Chinese market.

Patent Details

The China National Intellectual Property Administration (CNIPA) has granted Godavari Biorefineries a patent for its innovative anti-cancer molecule, HYDROXY-1,4-NAPHTHALENEDIONE. This compound belongs to a novel class that has shown promising results in inhibiting cancer and cancer stem cells during in vitro studies.

Potential Impact

The patented molecule has demonstrated significant efficacy against multiple cancer cell types, including breast and prostate cancer. This breakthrough could potentially lead to new treatment options for cancer patients, addressing some of the most pressing medical needs worldwide.

Company's Biotech Division

The patent was secured through Sathgen Therapeutics, Godavari Biorefineries' clinical-stage biotech division. This unit is at the forefront of developing innovative cancer and antiviral therapies, with their lead molecule currently undergoing clinical trials.

Executive Commentary

Dr. Sangeeta Srivastava, Executive Director of Godavari Biorefineries Limited, commented on the achievement: "Our focus on original, high-quality science continues to guide our journey beyond green chemistry into life sciences. This Chinese patent reinforces the promise of our lead molecule and the vital work being done by our team at Sathgen Therapeutics to develop innovative therapies for some of the most pressing medical needs worldwide."

Global Presence

Godavari Biorefineries has established a strong international presence, exporting to over 20 countries and maintaining robust connections with global research and development networks. The company's expansion into the pharmaceutical sector, particularly in the Chinese market, represents a significant diversification of its business activities.

About Godavari Biorefineries Limited

Godavari Biorefineries Limited is a leader in the renewable chemicals and biofuels industry, committed to creating sustainable solutions that contribute to a circular economy. Listed on both the BSE Limited and the National Stock Exchange of India Limited, the company has a legacy of innovation and a strong commitment to sustainability, driving progress in renewable energy and green chemistry.

This patent grant in China not only strengthens Godavari Biorefineries' position in the pharmaceutical sector but also underscores its dedication to addressing global health challenges through innovative research and development.