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Strides Shasun tanks 25% on weak Q4 results

The stock tanked 25% to Rs 378, also its 52-week low on the BSE after the company reported a consolidated net loss of Rs 44 million in March 2018 quarter.

SI Reporter  |  Mumbai 

Strides Shasun tanks 25% on weak Q4 results

Shares of have tanked 25% to Rs 378 per share, also their 52-week low on the after the company reported a consolidated net loss of Rs 44 million in March 2018 quarter (Q4FY18). The pharmaceutical company reported its first quarterly loss since September 2014 quarter. It had posted a net profit of Rs 916 million in Q4FY17.

Revenue from operations during the quarter under review declined 1.9% to Rs 6.64 billion from Rs 6.77 billion in the corresponding quarter of previous fiscal.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin declined 400 bps at 15% from 19% in December 2017 quarter. EBITDA margin for the financial year 2017-18 (FY18) declined 650 bps to 15% from 22% in FY17.

The company said the partnered business severally affected, witnessed intense pricing pressure and loss of market share during the quarter. Compressed institutional opportunity with low anti-malarial offtake & increased raw material prices. The aggressive investment in consumer healthcare (CHC) led to a loss of Rs 446 million, it added.

Weak performance in partnership portfolio and delay in approval for in one of the worst flu seasons additionally impacted Q4FY18 and led to missing management’s outlook for given in Q3FY18, said.

At 02:19 pm; the stock was trading 22% lower at Rs 391 on the BSE, as compared 0.65% decline in the S&P Sensex. The trading volumes on the counter jumped more than 10-fold with a combined 8.64 million shares changed hands on the and so far.


First Published: Fri, May 18 2018. 14:23 IST
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