Leading drugmaker Renata PLC posted handsome growth in its profits in the January to March period of 2023-24 thanks to higher sales coupled with effective cost management.

The local drug manufacturer's profit rose 21.4 percent year-on-year to Tk 72 crore in the third quarter when its earnings per share hit Tk 6.33, up from Tk 5.18 in the same period previous year.

Meanwhile, Renata's sales rose 9 percent year-on-year to Tk 921 crore in the three months to March this year, according to the data disclosed by the company in a board meeting held today.

"Higher sales contributed to achieving higher profits while effective cost management played a significant role in achieving a better bottom line," Jubayer Alam, company secretary of Renata PLC, told The Daily Star.

"Our finance costs increased significantly due to the devaluation of the local currency, high interest expenses, and depreciation from new capital investments. As a result, we embarked on a strategic cost management programme, which has begun to yield results."

However, the company's financial report showed that its operating costs dropped around 1 percent year-on-year to Tk 302 crore in the January-March quarter, which normally rises in every quarter.

In the nine months to March this year, its profits dropped 4 percent year-on-year to Tk 258 crore when its EPS fell to Tk 22.54 from Tk 23.47 in the same quarter of 2022-23.

The company's cumulative profit in three quarters exceeded the total profits of Tk 233 crore earned in 2022-23.

Alam hopes the company will post a satisfactory profit growth in 2023-24.

"Since we have exceeded last year's profit in just three quarters, even a modest performance in the fourth quarter would fuel growth significantly."

The company's year-to-date revenue growth of 14 percent was spread across its core businesses -- pharmaceuticals, animal health, and contract manufacturing.

Over the last few years, Renata PLC has invested heavily in expanding capacity and introducing new technologies.

In 2023-24, the company so far invested Tk 330 crore in the areas of automated warehouse, injectable facility, oncology solid, extensions of multiple depots and power plant.

It invested heavily in product development and research and development.

It has developed 70 bioequivalent products that are sold in 44 countries, including Bangladesh.

Today, stocks of the drug maker, however, dropped 0.58 percent to Tk 767 at the Dhaka Stock Exchange (DSE).

Renata's paid-up capital is Tk 114 crore and it has reserve and surplus of Tk 2,912 crore, according to the data of the DSE.

The pharma company provided 62.5 percent cash dividends to its shareholders for 2022-23.