Sequent Scientific tanks 17% on weak Q4; stock down 70% from 52-wk high

The company said the macro environment continues to be challenging due to volatility in costs and disruptions across supply chains.

Shares of Sequent Scientific tanked 17 per cent to hit a fresh 52-week low of Rs 101.45 on the BSE in Thursday’s trade on the back of heavy volumes after the company's consolidated profit after tax (PAT) more-than-halved to Rs 9 crore in the March quarter (Q4FY22).

At 11:19 am; the stock was trading 13 per cent lower at Rs 106.15, as compared to a 0.38 per cent decline in the Sensex. The trading volumes on the counter had doubled with a combined 4.8 million equity shares having changed hands on the NSE and BSE. Moreover, the scrip has corrected 70 per cent from its 52-week high level of Rs 336.40 touched on June 29, 2021.

The decline in the company's net profit was due to higher operational cost. The company, which is engaged in businesses across animal health (Alivira) & analytical services, had posted a profit of Rs 20.6 crore in the year ago quarter.

Its consolidated revenue grew 6 per cent year on year to Rs 383.7 crore from Rs 361.8 crore in the corresponding quarter of previous fiscal. Earnings before interest, taxes, depreciation, and amortization (EBITDA) margin contracted 360 bps YoY at 10.1 per cent.

On a full year-basis, the company’s consolidated net profit declined 49 per cent YoY to Rs 109 crore in FY22 against Rs 216 crore in FY21. EBITDA margin declined to 7.7 per cent from 15.9 per cent in the previous year.

"The macro environment continues to be challenging due to volatility in costs and disruptions across supply chains. India business achieved a key milestone crossing the landmark of Rs 100 crore revenues for the year. The Europe business' weakness was owing to supply chain pressures and slowdown in demand. Surprises in currency volatility impaced Turkey growth, and uncertainty is likely to continue in the near future," the management said.