Solara Active Pharma shares end higher after return to profitability, revenue back at historical rate

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Shares of Solara Active Pharma Sciences Ltd. ended over 4.5 percent higher on Wednesday after the company returned to profitability in the December quarter. The company's revenue also returned to its historical quarterly run-rate.

Solara delivered a profit of Rs 45 lakh during the September quarter, compared to a net loss of Rs 139.87 crore during the same period last year.

Solara also delivered an operating profit for the quarter of Rs 45 crore, compared to an EBITDA loss of nearly Rs 100 crore last year. EBITDA margin for the quarter stood at 11.4 percent.

The company's management called this a "turnaround quarter" where it achieved most of its targeted goals. The management further said that their order book continues to improve each quarter and that cost improvement plans are starting to deliver the desired outcomes, aiding profitability.

Solara Active Pharma’s site in Vizag, Andhra Pradesh, began manufacturing intermediates and final API in the December quarter, while the company’s research and development segment filed two new DMFs (drug master files) during the quarter, on track to file a total of six in the current financial year.

Solara has also appointed Poorvank Purohit as the new CEO.

Shares of Solara ended 4.4 percent higher at Rs 436.15.