Strides Shasun for the first quarter reported net profit at Rs 41.79 crore and total income stood at Rs 870 crore versus Rs 955 crore quarter on quarter.
EBITDA came in at Rs 143.7 crore versus Rs 179.5 crore quarter on quarter and EBITDA margins came in at 17 percent versus 18.8 percent QoQ. Forex loss stood at Rs 13.2 crore.
The company underwent a lot of restructuring in the past one year – Strides was merged with Shasun, acquired business in Australia, made changes in the accounting standard and did other small acquisitions etc. So, the numbers need to be looked at on a standalone basis and not year on year basis.
Talking about the numbers, Sumit Singhania of Nirmal Bang said the EBITDA margins were in line with expectations but the revenues were below estimate, so the numbers were below 10 percent of their estimates.
The company reported 100 percent sales in international business, so geographies for the company look good but one would keenly watch for what the management has to say about the outlook for US business in their concall, said Singhania, which the company is looking to ramp up.
With regards to the company Board approving hiving off the API business into a wholly-owned subsidiary, Singhania said that was is in line with the process of re-integrating the entire business. The FY16 turnover stood at Rs 712.2 crore.
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