Neuland Lab spurts after strong Q3 performance

Neuland Laboratories jumped 6.64% to Rs 1483 after the company's consolidated net profit surged 140.7% to Rs 26.74 crore on a 20.4% rise in net sales to Rs 245.39 crore in Q3 FY21 over Q3 FY20.

EBITDA increased by 60.6% to Rs 46.7 crore in Q3 December 2020 from Rs 29.1 crore in Q3 December 2019. EBITDA margin was at 19% as on 31 December 2020 as against 14.2% as on 31 December 2019.

Profit before tax in Q3 FY21 stood at Rs 31.95 crore, up by 103.9% from Rs 15.67 crore in Q3 FY20. Current tax outgo rose by 37% to Rs 4.33 crore in Q3 December 2020 over Q3 December 2019. Interest expenses during the quarter declined by 22% year-on-year (YoY) to Rs 4.44 crore.

Commenting on the performance Sucheth Davuluri, vice-chairman and chief executive officer of the Company, said: "We are pleased to announce another strong quarter of top line and bottom-line performance. The revenue at Rs.245.6 crores was a 20% improvement over the corresponding quarter of the last fiscal while the margins have showed an upward trajectory and closed at 19.0%. This was driven by growth across the Generic Drug Substances (GDS) and Custom Manufacturing Solutions (CMS) verticals. We remain confident of our long-term growth aspirations as well as our margin resilience."

In addition, Saharsh Davuluri, vice chairman and managing director, Neuland Labs, added: "We are pleased with the momentum shown by the CMS business while the GDS also continues to play an important part in the growth. The driver of this quarter's CMS uptick has been the strong performance from the scaleup projects which have contributed to the revenues. Unit 3 has started commercial production and we are currently shipping out 2 API's from this facility. We expect Unit 3 to be a major driver of our growth going forward."

Neuland Laboratories is a pharmaceutical manufacturer providing active pharmaceutical ingredients (APIs), complex intermediates and custom manufacturing solutions services to customers located in around 80 countries.

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