Suven Pharma Q3 Earnings Fall 10%, Margins Narrow Significantly

6 Feb 2024 , 12:32 PM

Suven Pharma’s stock fell 10% during the first trading day on February 6 as the company’s Q3 earnings let investors down on all three of the important metrics: net profit, revenue, and profitability.

The company’s net profit for the December quarter fell to ₹46.5 Crore from ₹107.7 Crore in the previous fiscal year, a 56.6% year-over-year decline. An one-time adjustment of ₹ 3.40 Crore towards inventory provision hurt the drugmaker’s bottom line.

Additionally, revenue fell by 37.90% year over year to ₹219.80 Crore from October to December. Volume declines brought on by channel inventory destocking, demand problems in Brazil and Ukraine, and a drop in prices that impacted generics more than innovators and reduced the company’s overall revenues all had an effect on the specialty chemicals sector.

Suven Pharma’s shares were trading at ₹611 on the NSE at 12:31 p.m.

The third quarter’s operational performance was negatively impacted by the company’s dismal earnings and FX losses during the quarter. In the third quarter, the EBITDA margin decreased significantly to 29.7% from 41.5% in the same period last year.

The company is still hopeful about the next quarters, though, as it works to improve its offers, maximize the use of its current capabilities, and form partnerships supported by significant R&D expenditures.

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