Sequent Scientific fell 13.79% to Rs 105.05 after the company’s consolidated net profit fell 56.57% to Rs 8.96 crore on a 6.05% increase in net sales to Rs 383 .71 crore in Q4 March 2022 compared to Q4 March 2021.
On a consolidated basis, profit before tax fell 35.85% year-on-year to Rs 18.61 crore in the fourth quarter of March 2022.
EBITDA (before ESOP) fell by 22.02% to Rs 38.60 crore during the period under review. EBITDA margin was 10.1% in Q4 March 2022, down from 13.7% in Q4 March 2021.
Total expenditure increased by 9.99% to Rs 350.36 crore. The cost of materials consumed increased by 14.72% to Rs 180.76 crore while payroll taxes increased by 6.07% to Rs 57.18 crore.
Overall business grew 11.7% in constant currency (cc) during the fourth quarter. The API segment recovered with a strong performance in the fourth quarter with growth of 11% cc. However, inflationary cost pressures continued to have an impact. The formulations segment maintained its momentum in the fourth quarter with growth of 12% cc. LATAM, Emerging Markets and India performed exceptionally well.
Activity in Turkey increased by 15.3% cc. However, it was impacted by currency depreciation. Europe’s performance was moderate. It is expected to recover in the future.
For the full year, Sequent Scientific’s net profit decreased by 56.78% to Rs 41.25 crore on a 3.76% increase in net sales to Rs 1,412.82 crore in the year ended in March 2022 over the year ended March 2021.
Commenting on the company’s performance, Rajaram Narayanan, Chief Executive Officer, said, “The fourth quarter of FY22 reflects strong performance in APIs and formulations. Our API business in this quarter increased by 11% at constant currency in a challenging environment Formulations business grew in line with expectations at 12% in constant currency, driven by better than market performance in Latin America and India Macroeconomic environment continues to be challenging due to volatile costs and disruptions in supply chains Our concerted efforts to build strong partnerships and sensible price increases have begun reflecting in our fourth quarter FY22 financial performance. our strategy to build a single leader in animal health. To this end, we will continue to invest Invest in building R&D, manufacturing and long-term partnership capabilities.
The company’s net debt increased to Rs 254.20 crore in March 2022, higher than Rs 192.90 crore in December 2021 and Rs 162.80 crore in March 2021. Net debt increased due to minority consolidation and acquisition of Nourrie – Rs 60.7 crore.
SeQuent Scientific is India’s largest animal health company and is listed among the “Top 20” global animal health companies, backed by global investment firm “The Carlyle Group” as a sponsor. The company has 9 manufacturing facilities in Europe, Turkey, Brazil and India, with the Vizag site being the only dedicated USFDA-approved API veterinary facility in India.
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