You are here: Home » Markets » News
Business Standard

Alembic Pharma dips 5% on disappointing September quarter results

Alembic Pharma said that the USFDA recently inspected the company's injectable facility (F-3) site and issued Form 483 with 10 observations

Topics
Buzzing stocks | Alembic Pharmaceuticals | Markets

SI Reporter  |  Mumbai 

Alembic Pharma dips 5% on disappointing September quarter results

Shares of dipped 5 per cent to Rs 757 on the BSE in the intra-day trade on Thursday after the company's consolidated profit declined 49 per cent year on year (YoY) at Rs 169 crore in September quarter (Q2FY22), due to lower revenue. The pharmaceutical company had posted profit of Rs 333 crore in the year-ago quarter.

At 10:45 am, the stock was trading 3.4 per cent lower at Rs 766.20, as compared to a 0.87 per cent decline in the S&P BSE Sensex. It had hit a 52-week low of Rs 720.80 on August 23, 2020.

In Q2FY22, the company's total revenue was down 11 per cent to Rs 1,292 crore from Rs 1,457 crore in Q2FY21. The US revenue declined 40 per cent to Rs 348 crore on YoY basis. However, India business grew 23 per cent to Rs 509 crore over the previous year quarter. Consolidated earnings before interest, tax, depreciation and amortization (ebitda), post R&D, contracted 21 per cent from 31 per cent.

The management believes the current US sales figures ($47 million per quarter) are the new base, and these are expected to improve hereafter, led by new launches.

"Alembic Pharma's subdued performance in US/API was offset by a better-than-expected show in the Domestic Formulation (DF) segment. The YoY declining trend in the US business has reached a trough with the limited impact of price erosion and an increased pace of launches going forward," Motilal Oswal Financial Services said.

The brokerage firm has lowered its FY22E/FY23E EPS estimate by 7.5 per cent/5.8 per cent, factoring in a delay in successful compliance at injectables sites, gradual revival in US sales, and higher RM/logistics costs.

Meanwhile, in exchange filing Alembic Pharma said that the United States Food and Drug Administration (USFDA) recently inspected the company’s injectable facility (F-3) site and issued Form 483 with 10 observations. "None of the observations are related to data integrity and management believes that they are addressable. The Company is preparing the response to the observations, which will be submitted to the USFDA," the company said.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, November 11 2021. 11:08 IST
RECOMMENDED FOR YOU
.