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Shares of FDC hit a 52-week low of Rs 399.85, as they slipped 9 per cent on the BSE in Thursday’s intra-day trade after the company reported 53.2 per cent year-on-year (YoY) decline in consolidated profit after tax (PAT) at Rs 37 crore in the December quarter (Q3FY25), due to a weak operational performance.
The stock of the pharmaceutical company fell below its previous low of Rs 405.05, hit on June 4, 2024. At 02:13 PM; FDC was quoting 6 per cent lower at Rs 411.85, as compared to 0.02 per cent rise in the BSE Sensex. The stock has corrected 39 per cent from its 52-week high of Rs 659 touched on September 12, 2024.
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In Q3FY25, FDC’s operational revenue remained flat at Rs 464 crore, against Rs 458 crore in Q3FY24, due to weak formulation sales. Earnings before interest, tax, depreciation and amortization (EBITDA) was down 44.3 per cent on a YoY basis at Rs 47 crore; margin contracted to 10.1 per cent in Q3FY25 from 18.3 per cent in Q3FY24.
EBITDA for Q3FY25 was impacted by lower sales in export formulation business, price reduction in the Electral range of products, driven by National List of Essential Medicines (NLEM) price revisions changes in the product mix, and higher employee costs.
Formulation sales in the export market were at Rs 47 crore in Q3FY25, down by 34.2 per cent on a YoY and lower by 23.2 per cent over QoQ basis. Export formulation business impacted during the period primarily due to lower sales in the US markets.
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FDC is a forerunner in the manufacturing and marketing of Oral Rehydration Salts (ORS), anti-infectives and ophthalmic. FDC has also set up globally approved, multi-location manufacturing facilities for Active Pharmaceuticals Ingredients (APIs) as well as Finished Dosage Forms (FDF).
In formulations, the company’s product offerings cover an extensive range of categories, including anti-infectives, gastrointestinal treatments, ophthalmics, vitamins, minerals, dietary supplements, cardiovascular solutions, anti-diabetics, respiratory care, gynaecology, dermatology and analgesics.
The US market remains a major contributor, accounting for 51 per cent of the total international business for FDC.
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