The famous investor Mukul Agrawal held 1.05% of the capital of this company as of June 30, which was valued at Rs 58 crore after the sharp drop on Wednesday.
The API and formulation maker said its consolidated after-tax profits plunged 86% to Rs 2.7 crore from Rs 19.40 crore in the quarter last year. Profit stood at Rs 23.50 crore in the March quarter.
The company said the second wave of Covid impacted its operations in April and May in India. Operational performance was also affected by the upsurge in cases in Brazil and the EU. In contrast, the cost of inputs has increased for APIs, excipients, fuel and logistics. There were uncertainties and delays in material supplies. API demand was moderate; there has been a slowdown in Spain and a depreciation of the Turkish lira, he added.
The stock fell 20% to Rs 224.25 on BSE. Agrawal owns more than 1% of the capital of 44 shares, valued at 1,753 crore rupees, according to publicly available data with Trendlyne.
“The past quarter has indeed been the most difficult, both in terms of demand and execution. We are delighted to report a growth of over 15% in our formulations business, even as our API business recorded a decline after several quarters of steady growth, ”said Managing Director Manish Gupta.
Revenue increased 8.53% year-on-year to Rs 320.50 crore from Rs 295.30 crore in the quarter of last year. Gross margin fell to 48.1 percent, down 100 basis points from 49.1 percent in the previous year quarter. Sequentially, the margin fell 60 basis points from 48.7 percent in the March quarter.
The EBITDA margin decreased 460 basis points to 11.2% from 15.8% year-on-year.
Gupta said that despite a slower start to the year, his company remains confident and on track to meet financial and strategic goals for the year.
“We expect a strong recovery in our API business in the second half of the year. Our strategy for the API business continues to perform well as we continue to improve the quality of our business with an ever increasing contribution from regulated markets business, which now stands at 72%. against 66% last year, “he said.