The recent monetisation of land in Thane, near Mumbai, has strengthened the company’s position, leaving RPG Life Sciences with a cash surplus of over ₹200 crore after clearing its debt over the past five years. This surplus is now driving the company’s acquisition ambitions, Sikri said.
RPG Life Sciences operates in three main segments: domestic formulations, international formulations, and APIs.
Domestic formulations contribute about 66% of revenue, international formulations 19%, and APIs 15%, and all three segments are growing in double-digits.
Sikri expects margins to continue to remain around 27%.
The domestic formulations business has been outpacing market growth. International formulations grew 17% in the first half of the year, and APIs, which had previously lagged, are now achieving growth rates of around 15%.
Also Read: RPG Life Sciences approves ₹32.2 crore transfer charges and signs ₹144.9 crore land sale agreement
In July-September 2024 (Q2FY25), the company’s revenue grew by nearly 12% year-on-year (YoY) to ₹172 crore. The earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew 22% to ₹46 crore while adjusted profit after tax (PAT) grew by 22% to ₹32 crore.
RPG Life Sciences’ current market capitalisation is around ₹4,202.89 crore, with shares gaining nearly 76% in the past year.
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