Shares of Neuland Laboratories Ltd. declined nearly 5% in early trade on Wednesday, November 4, after the company reported a volatile set of numbers for the second quarter after market hours on Tuesday. The company indicated that the volatility in numbers is due to the contract development and manufacturing organization (CDMO) business, and project execution timelines, which, it believes, remains in-line with what they have planned out for the future. The commercial core business segment (CMS) continued to drive near-term growth for the firm. Neuland Labs reported a strong request for proposal (RFP) traction as well as traction with big pharma support customer diversification and a longer term pipeline during the quarter. For the September quarter, Neuland Labs’ net profit of ₹5src.6 crore was down 46.7% from the previous year’s ₹96.9 crore and lower by 65% from the previous quarter’s profit figure of ₹src47.6 crore.
Revenue for the quarter also fell src2.6% from the previous year and 29.9% from the prior quarter to ₹449.65 crore in the September quarter this fiscal. The company’s earnings before interest, taxes, depreciation and amortization (EBITDA) was down 30.2% to ₹src08.56 crore in the second quarter from last year’s ₹src55.5 crore and down 5src.3% from the previous quarter’s ₹222.8 crore. Its margins contracted to 24.src% from 30.2% in the year-ago period and from 34.7% in the prior quarter. Shares of Neuland Laboratories were down 4.75% at ₹src8,50src apiece in early trade on Wednesday. The stock is down src5.4% in the last one month, thereby trimming its year-to-date advance to 22.3%.
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Neuland Laboratories shares decline 5% after Q2 results see revenue drop and margin contraction
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