Sequent Scientific fell 0.25% to Rs 81 after consolidated net profit dropped 1.52% to Rs 16.86 crore on 6.72% increase in net sales to Rs 300.08 crore in Q4 March 2020 over Q4 March 2019.
Animal health industry is classified as an essential sector. Hence, the company said that its business was largely unimpacted due to the COVID-19 crisis. Only sales worth Rs 8.3 crore could not be recognized due to transportation related challenges in the initial period of lockdown. The Q4 earnings was made post trading hours yesterday, 12 May 2020.
Consolidated profit before tax jumped 11.71% to Rs 24.13 crore in Q4 March 2020 as against Rs 21.60 crore in Q4 March 2019. EBITDA soared 27% to Rs 51.10 crore in Q4 March 2020 from Rs 40.20 crore in Q4 March 2019. EBITDA margin improved 17% in Q4 March 2020 from 14.3% in Q4 March 2019.
Commenting on the firm's Q4 performance, Manish Gupta, the managing director of Sequent Scientific, has stated that, "We are pleased with our performance in FY 20 despite the global headwinds, which reflects our unique business model and strong execution skills. This marks another year of mid-teen revenue growth and 210 bps EBITDA margin expansion, in line with our stated aspirations. Particularly noteworthy is our Q4 performance wherein the entire organization excelled in a very challenging environment and delivered our best quarter in terms of EBITDA and EBITDA margin."
"We have now delivered 12 quarters of consistent performance with improvement across all financial parameters since becoming a pure-play animal health company in 2018. The Carlyle Group's offer to acquire upto 74% of stake in Sequent marks a new beginning for us. We look forward to leverage Carlyle's global network and resources to further accelerate our quest to be amongst leaders in the Global animal health space. We at SeQuent, wish to thank our current promoters - Arun Kumar and K R Ravishankar for their unflinching support and confidence, which got us to the position we are in today," he added.
With respect to revenue distribution, Active Pharmaceutical Ingredients (APIs) grew 6% to Rs 107.20 crore in Q4 March 2020 as against Rs Rs 101.20 crore in Q4 March 2019. Global sales rose 6.6% to Rs 300.60 crore in Q4 March 2020 as compared to Rs 281.90 crore in Q4 March 2019. Formulations grew 7% to 193.40 crore during the period under review.
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Last week, the US-based Carlyle Group agreed to acquire up to a 74% stake in animal health focused pharmaceutical company SeQuent Scientific. Carlyle will buy shares at Rs 86 each. The proposed transaction triggered a mandatory open offer by CA Harbor Investments and CAP V Mauritius for the purchase of up to 26% equity shares of SeQuent from public shareholders. Following the completion of this transaction, CA Harbor Investments will become the new promoter of SeQuent.
Headquartered in Mumbai, SeQuent is the largest Indian pure-play animal healthcare company with global operations. SeQuent provides animal health Active Pharmaceutical Ingredients (API), formulations, and analytical services in over 100 countries, with more than 1,700 employees and manufacturing operations in India, Spain, Turkey, Germany and Brazil.
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