Neuland Lab jumps on Rs 342-cr capex plan for capacity expansion

Neuland Laboratories gained 5.16% to Rs 13,876.90 after its board approved a capital expenditure of Rs 342 crore to expand the peptide synthesizer reactor capacity at Unit-1 from 0.5 KL to 6.37 KL, and to add 52 KL of capacity at Unit-3.

The pharma company plans to expand the peptide synthesizer reactor capacity at its Unit-1 in Bonthapally Village, Sangareddy District, Telangana, from 0.5 KL to 6.37 KL by FY27. The Rs 254 crore capital expenditure will support the development and commercial production of peptides for its GDS & CMS business.

Additionally, the companys board has also approved an investment of Rs 88 crore towards building an additional capacity of 52 KL in its Unit-3 located at Gaddapotharam Village, Sangareddy District in Telangana. This capacity expansion is expected to be completed in 15 to 18 months. The capex is aimed at meeting the growing demand from customers.

Neuland Laboratories is engaged in the manufacturing and selling of bulk drugs and caters to both domestic and international markets.

The company reported a consolidated net profit slipped 63.2% to Rs 32.84 crore on 25.6% decline in net sales to Rs 310.84 crore in Q2 FY25 over Q2 FY24.

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