ERIS Lifesciences Reports Mixed Performance in Q2 FY25, Net Sales Reach Highest in 5 Quarters

ERIS Lifesciences, a midcap pharmaceutical company, recently announced its financial results for the quarter ending September 2024. The company’s stock has been given a ‘Hold’ call by MarketsMOJO.

According to the financial report, ERIS Lifesciences has shown a flat performance in the quarter, with a score of 2 compared to -10 in the previous quarter. However, there are some positive aspects to the company’s financials.

The net sales for the quarter have grown by 46.68% year on year, reaching Rs 741.17 crore. This is the highest net sales in the last five quarters, indicating a positive trend in the company’s sales. The operating cash flow for the year has also been the highest in the last three years, at Rs 486.01 crore. This shows that the company has generated higher cash revenues from its business operations.

The operating profit (PBDIT) for the quarter has also been the highest in the last five quarters, at Rs 264.51 crore. Similarly, the profit before tax (PBT) has also been the highest in the last five quarters, at Rs 124.56 crore. These figures suggest a positive trend in the company’s operating profit and PBT.

However, there are some areas that need improvement. The interest cost for the half-yearly period has increased by 134.29% compared to the previous period, indicating increased borrowings. The profit after tax (PAT) for the quarter has also fallen by -25.8% year on year, showing a negative trend. Additionally, the dividend payout ratio (DPR) for the year has been the lowest in the last five years, indicating that the company is distributing a lower proportion of its profits as dividends.

Overall, ERIS Lifesciences has shown a mixed performance in the quarter ending September 2024. While there are some positive aspects to the financials, there are also areas that need improvement. Investors are advised to hold their stock and monitor the company’s performance in the upcoming quarters.