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Sequent Scientific hits 22-month low after weak earnings

The firm reported a net profit of Rs 10.04 crore in the March quarter, down 57.34% from Rs 23.52 crore a year ago. Revenue rose 6% from a year ago to Rs 383.71 crore.

May 26, 2022 / 11:04 AM IST
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Sequent Scientific Ltd on Thursday fell nearly 17 percent to hit a 22-month low after the company reported a 57 percent drop in its net profit for the March quarter.

The stock hit a low of Rs 101.45 on the BSE - a level last seen on July 15, 2020 and fell as much as 16.7 percent, its maximum fall since August 11, 2021. At 10.50am on Thursday, the scrip was trading at Rs 102.70 on the BSE, down 15.7 percent from its previous close.

The company reported a net profit of Rs 10.04 crore for the March quarter, down 57.34 percent from Rs 23.52 crore a year ago. Revenue rose 6 percent from a year ago to Rs 383.71 crore.

"The macro environment continues to be challenging due to volatility in costs and disruptions across supply chains," said Managing Director Rajaram Narayanan.

"Our concerted efforts towards building strong partnerships and judicious price increases have started reflecting in our Q4FY22 financial performance. We remain committed to our strategy to build a unique leader in animal health. Towards this goal, we will continue to invest in building capabilities in R&D, manufacturing and long-term partnerships," Narayanan said.

EBITDA margin contracted sharply to 10.1 percent versus 13.7 percent a year earlier. Total cost rose 10 percent to Rs 368.87 crore.

Its overall business grew 11.7 percent year-on-year in the quarter on a constant currency basis. API business in this quarter grew by 11 percent on a constant currency basis in a challenging environment. The formulations business grew as per expectations at 12 percent on a constant currency basis, driven by market-beating performance in Latam and India, the firm said.

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Moneycontrol News
first published: May 26, 2022 11:04 am