Neuland Lab's Q3 PAT declines 52% yoy as GDS business, supply chain challenges and cost fronts hit revenue

1 Feb 2022 , 04:24 PM

Neuland Laboratories Ltd, a pharmaceutical manufacturer providing active pharmaceutical ingredients (APIs), complex intermediates, and custom manufacturing solutions services to customers located in around 80 countries, announced its results for the quarter ended December 2021.

Neuland Laboratories closed at Rs1,400 down by Rs 77.35 or 5.24% from its previous closing of Rs1,477.35 on the BSE.

The company reported total income for Q3 FY’22 at Rs 238.40 crores as against Rs 245.60 crore for Q3 FY’21, a decline of 2.9% YoY, while revenue for the previous quarter stood at Rs 258.10 crore, reflecting a decline of 7.7% QoQ. Its revenue for the 9M period ending December 2021 turned out to be Rs 699.40 crores as against Rs 693.70 crores for the same quarter previous year, reflecting a marginal growth of 0.8% YoY.

Neuland Lab’s EBITDA for December 2021 quarter stood at Rs 34.20 crore as against Rs 46.70 crore for the previous corresponding quarter, diving over 26.8% YoY, and EBITDA for the July-September quarter was reported at Rs 43.10 crore, 20.6% higher over the current quarter. Its EBITDA margin came out to be 14.35% for the current quarter, 240 bps lower than the same quarter last year.

EBITDA for the current 9M period stood at Rs 104.90 crore against Rs 122.50 crores, down by 14.3% YoY.

The company’s PAT for December 2021 quarter stood at Rs 12.70 crore as against Rs 26.70 crore, reflecting a significant decline of 52.3% YoY.

Saharsh Davuluri, Vice Chairman and Managing Director, Neuland Labs stated “FY 22 has been a challenging year for us with volatility both on the revenue and cost fronts. While Q3 revenues have been impacted by the GDS business, the ongoing raw material and supply chain challenges have also tested our mettle. Given the circumstances and ongoing investments for the future, profitability margins this quarter are not reflective of the businesses’ potential. On the CMS front, we are seeing good traction in new opportunities even as we are focussed on delivering the current projects which are exciting in terms of their potential.”