Sequent Scientific Stock Falls Most In 17 Months On Q1 Profit Drop
Shares of Sequent Scientific Ltd. declined the most in 17 months after the pharma company’s quarterly profit tumbled.
Net income dropped more than 88% sequentially to Rs 2.65 crore in the quarter ended June, according to an exchange filing.
Highlights (QoQ, Consolidated)
Revenue 11% down at Rs 320.51 crore.
Ebitda margin narrowed to 6.3% from 12.2%.
The company said its active pharmaceutical ingredient formulations business witnessed lower offtake given inventory rationalisation by key customers, and expects normalisation by the second half of the year. Its India and Latin America sales drove formulations growth, while Europe sales remained muted, primarily due to lower sales in Spain, Sequent Scientific said.
Growth in Turkey’s business was subdued on account of operational challenges, and the company expects it to pick up from the third quarter.
Shares of Sequent Scientific slumped 15.40% to Rs 254.35 apiece around 11:30 a.m. on Wednesday. This is the third consecutive session of a decline.
The stock’s trading volume was above 1.5 times its three-month full-day average. The Relative Strength Index was at 29.68, suggesting that it may be ‘oversold’. Shares of Sequent Scientific have gained 42.7% so far this year compared with a 15.4% rally in the Sensex.