SMS Pharma Strengthened Operations: Received EUGMP Certification

On October 01, 2024, SMS Pharmaceuticals Limited through an exchange filing announced that its Visakhapatnam (Vizianagaram) facility has successfully obtained European Good Manufacturing Practices (EUGMP) certification. Following a rigorous inspection conducted by the European Directorate for the Quality of Medicines & Healthcare (EDQM) from February 28th to March 1st, 2024, the facility’s Ibuprofen dossier was found to be in full compliance with the EU’s stringent quality standards.

This achievement underscores SMS Pharmaceuticals’ commitment to delivering high-quality products that meet international regulatory requirements. The EUGMP certification further strengthens the company’s position as a trusted partner in the global pharmaceutical industry.

Commenting on this achievement, Mr. P. Vamsi Krishna, Executive Director, stated: “We are proud to receive the EDQM certification, which reflects our commitment to quality and compliance with global standards, and pursuing market leadership in our select APIs globally. It is a testament to our team’s dedication and hard work, further solidifying our position as a trusted partner in the pharmaceutical industry.” 

SMS Pharma Financial Overview

Q1FY25 saw ₹164.45 crore in revenue from operations, up 22% YoY, primarily from strong growth in the ibuprofen and antidiabetic categories. Seasonality caused a 33% decrease in operating revenue sequentially.

Because of lower raw material prices and an improved product mix, gross margins increased to 35% in Q1FY25, up 39bps YoY and 971bps sequentially. Driven by greater gross margins and operational efficiency, the EBITDA margin increased by 104bps YoY and 670bps QoQ to reach 20%. For Q1FY25, EBITDA increased by 28% year over year to ₹33.51 crore. PAT increased 76% YoY to ₹16.48 crore, mostly as a result of lower financing costs. In Q1FY25, the PAT margin increased to 10% from 7% in Q1FY24.

The company plans to enhance production capacity by the end of Q4FY25 and complete the backward integration of critical intermediates by H1FY25 as part of the ₹150 crore investment plan.

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