Shares of Sanofi India falter after tepid Q1 results

Sanofi

Sanofi India’s shares falter as the company registered tepid growth in the June quarter. The shares were down 3.17 percent to Rs 7090.85 at 9:25 am. Previously, the shares of the company had risen 6.7 percent in the last week ahead of the earnings announcement on August 10 as some investors booked profit.

The healthcare company reported net profit of Rs 123 crore, up 2.2 percent against Rs 120 crore in the April-June quarter of last year. Revenue increased by 1 percent to Rs 706.1 crore from Rs 699 crore in the same period last year.

The company attributed the price revision to their products listed in NLEM (National List of Essential Medicines) as a reason for the tepid revenue growth.

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EBITDA stood at Rs 286.3 crore rising 8 percent with EBITDA margin at 40.6 percent. The company credited the improved operational margins to its increased operating efficiencies in a regulatory filing.

“The Company has delivered a strong second quarter performance despite the NLEM impact. The company’s ‘India for India’ strategy reflects Sanofi’s ambition in the Indian Market. The company will continue to focus on driving further improvement in operating efficiencies while expanding the availability of its established and innovative products in India.” said, Rodolfo Hrosz, Managing Director of Sanofi India in a press release.

Medicines listed in the NLEM are essential drugs that are used to treat common illnesses including fever, diabetes, cardiovascular disease, cancer, tuberculosis, blood disorders etc. Drugs like paracetamol, azithromycin, folic acids, vitamins and minerals are on the list. The central government had released the NLEM 2022 which includes 384 drugs in September 2022.

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