Shares of Suven Pharma plunged 10 percent in the opening trade on February 6 after the company's Q3 earnings disappointed investors on all three key parameters of net profit, revenue and profitability.
The company's net profit for the December quarter tanked 56.6 percent on-year to Rs 46.5 crore, down from Rs 107.7 crore last fiscal. The drugmaker's bottomline was dragged lower by an one-time adjustment of Rs 13.40 crore towards inventory provision.
Revenue also slumped 37.90 percent on-year to Rs 219.80 crore in October-December. The company's specialty chemicals business was impacted by volume decline due to channel inventory destocking and demand pressures in Brazil and Ukraine and a fall in prices which affected generics more than innovators and weighed on its overall revenues.
At 9.31am, shares of Suven Pharma were trading at Rs 594 on the NSE.
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The company's weak bottomline along with forex losses in the quarter also dragged its operational performance in Q3. EBITDA margin eroded sharply to 29.7 percent in Q3 as against 41.5 percent in the year-ago period.
However, the company remains optimistic of seeing better days in the quarters ahead as it aims at collaborations backed by its large R&D spends, enhancing its basket of offerings, and optimising its current capacities to full potential.
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