Neuland Laboratories witnessed a more than 13 percent decline in its share price during intra-day trading on Monday following the pharma company’s fiscal fourth-quarter results (Q4FY24) falling short of market expectations.
In Q4FY24, the company’s net profit dropped by 20 percent year-on-year (YoY) to ₹67.6 crore, compared to ₹84.5 crore in the corresponding quarter of the previous year. Additionally, its total income also saw a decline of 6 percent YoY to ₹390.4 crore, down from ₹415 crore in the same quarter last year.
The stock experienced a significant downturn, plummeting by as much as 13.5 percent to reach a day’s low of ₹6,150. It is currently over 21 percent below its record high of ₹7,794 achieved on April 18, 2024. Nonetheless, it remains up by more than 114 percent from its 52-week low of ₹2,518.55 recorded on May 12, 2023. Over the past year, the stock has surged by 176 percent and has seen an 18 percent increase in the year-to-date (YTD) period in 2024.
In terms of operational performance, the firm’s EBITDA in Q4FY24 witnessed a decline of 12 percent to ₹112.2 crore from ₹127.8 crore in Q4FY23. Moreover, its EBITDA Margin also contracted by 202 basis points YoY to 28.7 percent in Q4FY24.
Furthermore, the company noted a decrease in its Net Debt to ₹(32.6) crore at the end of Q4FY24, compared to ₹63.0 crore in Q4FY23 and ₹(44.6) crore in Q3FY24.
For the entire financial year 2023-24 (FY24), Neuland Laboratories reported a significant increase in net profit by 83.7 percent YoY to ₹299.6 crore, up from ₹163.1 crore in FY23. Its total income also surged by 30.8 percent YoY to ₹1,571 crore versus ₹1,200 crore in FY23. Moreover, EBITDA witnessed a substantial growth of 68.8 percent YoY to ₹474.5 crore in FY24, with the EBITDA Margin expanding by 680 basis points YoY to 30.2 percent.
Suchet Davuluri, Vice-Chairman and Chief Executive Officer of Neuland Labs, attributed the company’s strong performance to high growth in the CMS business and steady growth in the Specialty GDS business, along with efforts in optimizing costs and processes to ensure sustainability.
Additionally, the board of directors proposed a final dividend of ₹14/- (140 percent) per equity share for the financial year 2023-24, subject to approval at the 40th Annual General Meeting (AGM).
Neuland Laboratories Limited, established in 1984 and headquartered in Hyderabad, India, specializes in manufacturing and selling active pharmaceutical ingredients (APIs) globally, along with providing custom manufacturing solutions and peptide synthesis services.
