SeQuent Scientific Q4 PAT spurts 29% to Rs 24 cr

On a consolidated basis, SeQuent Scientific's net profit jumped 29.08% to Rs 23.52 crore on 20.37% rise in revenue from operations to Rs 361.82 crore in Q4 March 2021 over Q4 March 2020.

Profit before tax surged 20.18% to Rs 29 crore in Q4 FY21 as against Rs 24.13 crore in Q4 FY20. The Q4 earnings were announced post market hours yesterday, 30 June 2021.

Consolidated operating EBITDA grew 19.5% to Rs 61.10 crore in Q4 FY21 as against Rs 51.10 crore in Q4 FY20. EBITDA margin stood at 16.9% during the quarter compared with 17% during the corresponding quarter last year. Profit margin was at 5.7% in Q4 FY21 as compared to 6.1% in Q4 FY20.

Revenue from Formulations business jumped 29.6% to Rs 250.60 crore in Q4 March 2021 over Rs 193.40 crore in Q4 March 2020. Revenue from Active Pharmaceutical Ingredients (APIs) segment rose 3.8% to Rs 111.30 crore in Q4 FY21 from Rs 107.20 crore in Q4 FY20.

Commenting on the company's performance, Manish Gupta, the managing director (MD) of SeQuent Scientific, stated: "We are pleased to report another strong year of performance in an operationally challenging pandemic year. Our global formulations drove growth and strong outperformance in the key markets of Brazil, Turkey, and India. Revenue grew by 15.5% Y-o-Y to Rs 13,616 million. Operating EBITDA increased to Rs 2,375 million at 17.4%, a healthy expansion of 250 bps Y-o-Y. PAT grew 36.5% and the business generated Rs 1.5 billion+ in cash from operations enabling us to pare down debt, resulting in a two-notch improvement in credit rating. ROCE now exceeds 20%, reflecting the underlying strength of our business model we have built in Sequent 1.0. This confidence also reflects in the board recommending a 25% dividend for the year."

"I am very proud and grateful to our 1,700+ team, for their continued focus on relentless execution, during the COVID-19 pandemic induced global disruptions. This year has been an eventful one, with onboarding of new promoters and reconstitution of board with industry stalwarts. As we embark on the journey of SeQuent 2.0 under the guidance of our board, I am confident that we will be able to accelerate the revenue growth in the coming years. As we expand our horizons, we remain committed to invest in building up capabilities that will propel us forward to be amongst the top animal health companies in the world."

During the financial year, SeQuent Scientific's consolidated net profit soared 27.31% to Rs 104.45 crore on 15.46% increase in revenue from operations to Rs 1,361.61 crore in FY2021 over FY2020.

Meanwhile, the board has recommended a final dividend of Rs 0.50 per equity share for the financial year ended 31 March 2021.

Sequent Scientific is the largest Indian pure-play animal healthcare company with global operations. Sequent provides animal health Active Pharmaceutical Ingredients (API), formulations, and analytical services in over 100 countries, with more than 1,700 employees and manufacturing operations in India, Spain, Turkey, Germany and Brazil.

Shares of SeQuent Scientific slumped 7.56% to Rs 289 on BSE. The scrip hovered in the range of Rs 286.10 to Rs 304.70 so far.

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