 "Neuland Labs plunges over 14% on weak Q4 performance; Profit, margins drop")
The share of active pharmaceutical ingredients (API) manufacturer, Neuland Laboratories fell as much as 14.5 per cent at Rs 6096.75 per share on the BSE in Monday’s intraday deals. The stock prices cracked after the company delivered a sluggish performance in its January-March quarter earnings for the fiscal year 2023-24 (Q4FY24).
Neuland Labs total income fell by 6 per cent year on year (YoY) to Rs 390 crore in Q4FY24 as against Rs 415 crore in Q4FY23. The company’s net profit also dropped by 20 per cent YoY to Rs 67 crore from Rs 84 crore in the same quarter of the previous fiscal.
The company’s earnings before interest tax depreciation and amortisation (Ebitda) reduced to Rs 112 crore from Rs 127 crore in the corresponding quarter of FY23, falling by 12.2 per cent YoY.
The Ebitda margins improved by 202 basis points to be recorded at 28.7 per cent in Q4FY24 against 30.8 per cent in Q4FY23.
However, the API manufacturer recorded a 30.8 per cent rise in consolidated income to Rs 1571 crore on a full year basis in FY24 versus Rs 1200 crore in FY23. For FY24, Neuland’s PAT also soared by 83 per cent to Rs 299 crore as against Rs 163 crore. Ebitda for FY24 stood at Rs 474 up 69 per cent YoY from Rs 281 crore in FY23. The Ebitda margins however grew sharply by 680 bps and stood at 30.2 in FY24 against 23.4 in FY23.
Sucheth Davuluri, vice-chairman and chief executive officer of the company said, “We surpassed revenues of Rs. 1500 crores in FY24 with EBITDA at over 30 per cent. This has been driven by high growth in the CMS business and steady growth of the Specialty GDS business, both of which were in line with our plans and expectations. Another key element is the work on optimizing costs & processes which will also make us truly sustainable.”
Sucheth Davuluri, vice-chairman and chief executive officer of the company said, “We surpassed revenues of Rs. 1500 crores in FY24 with EBITDA at over 30 per cent. This has been driven by high growth in the CMS business and steady growth of the Specialty GDS business, both of which were in line with our plans and expectations. Another key element is the work on optimizing costs & processes which will also make us truly sustainable.”
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At 01:05 PM; the stock of the company was trading 10.19 per cent higher at Rs 6,407 per share. By comparison, the S&P BSE index fell 0.23 per cent at 72,498 levels. Neuland Labs is presently trading at a price to earnings multiple of 27.44, shows BSE data.
Neuland Laboratories is a pharmaceutical manufacturer providing active pharmaceutical ingredients (APIs), complex intermediates and custom manufacturing solutions services to customers located in around 80 countries.