Solara Active Pharma Sciences Reports Q2 Net Loss of 101M Rupees

Solara Active Pharma Sciences Limited (Solara), a leading active pharmaceutical ingredient (API) manufacturer, has reported its financial results for the second quarter. The company faced significant challenges, resulting in a net loss and decreased revenue.

Financial Performance

Solara's Q2 performance was marked by a notable downturn compared to the same period last year:

Metric	Q2 Current Year	Q2 Previous Year	YoY Change
Revenue	₹3.14 billion	₹3.47 billion	-9.5%
EBITDA	₹347.30 million	₹613.10 million	-43.4%
EBITDA Margin	11.08%	17.67%	-659 bps
Net Profit	₹(101) million	₹80 million	-

The company reported a net loss of ₹101 million, compared to a profit of ₹80 million in the same quarter of the previous year. Revenue declined to ₹3.14 billion from ₹3.47 billion year-over-year.

Operational Performance

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) dropped significantly to ₹347.30 million from ₹613.10 million in the corresponding quarter of the previous year. The EBITDA margin compressed to 11.08% from 17.67%, indicating pressure on the company's operational efficiency.

Challenges and Outlook

While specific reasons for the downturn were not provided in the update, the significant decline in profitability and revenue suggests that Solara Active Pharma Sciences faced substantial operational challenges during the quarter. The company may need to address these issues to improve its performance in the coming quarters.

Investors and stakeholders will likely look for guidance from the management on strategies to return to profitability and improve operational metrics in the near future.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.33%	+4.93%	+0.84%	+27.04%	-22.57%	-38.61%

Solara Active Pharma Sciences Limited (SOLARA), a prominent player in the pharmaceutical sector, has announced a significant corporate action involving the conversion of partly paid-up shares and an increase in its paid-up capital.

First Call Money Receipt and Share Conversion

The company has successfully received the first call money amounting to Rs 4.88 crore for 3,71,779 partly paid-up Rights Equity Shares. This development comes as part of the company's ongoing rights issue process. The Rights Issue Committee, through a circular resolution, has approved the conversion of these shares from Rs 3.50 paid-up to Rs 7 paid-up status.

Impact on Paid-Up Capital

Following this conversion, Solara Active Pharma Sciences' paid-up capital has increased to Rs 44.47 crore. The company's capital structure now comprises:

Share Type	Number of Shares	Status
Equity Shares	3,61,54,267	Fully paid-up (face value Rs 10 each)
Rights Equity Shares	1,17,61,546	Partly paid-up (Rs 7 paid-up)
Rights Equity Shares	2,37,209	Partly paid-up (Rs 3.5 paid-up)

Rights Issue Background

The original rights equity shares were allotted on June 19, 2024, pursuant to a Letter of Offer dated May 09, 2024. This recent conversion is a part of the ongoing process related to that rights issue.

Next Steps

Solara Active Pharma Sciences has stated that it will take necessary steps for corporate actions and obtain listing and trading approvals for the converted shares. This move is expected to enhance the liquidity of these shares in the market.

Regulatory Compliance

The company has made this disclosure in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. This ensures transparency and keeps shareholders and the public informed about significant corporate actions.

This corporate action demonstrates Solara Active Pharma Sciences' commitment to its capital raising plans and indicates ongoing investor interest in the company's equity. Shareholders and potential investors should keep an eye on further announcements regarding the listing and trading of these converted shares.