Neuland Labs zooms 20 per cent post Q3 results

The API pharma company reported revenue growth of 40 per cent YoY. The stock steadily moved northward on Wednesday and in the afternoon session zoomed 20 per cent to close at its upper circuit limit.

The company's standalone revenue for Q3FY19 was Rs. 171.87 crore as compared to Rs. 123.13 crore in Q3FY18, which is a growth of 39.6 per cent. EBITDA for the quarter was at Rs. 16.25 crore as compared to Rs. 10.44 crore in the corresponding quarter a year ago. EBITDA margin was at 9.5 per cent for Q3FY19 as against 8.5 in Q3FY18. The company's net profit for the quarter was at Rs. 4.60 crore as against Rs. 0.74 crore in Q3FY18, while on a QoQ basis, net profit was marginally up by 4.54 per cent at 4.6 crore in Q3FY19 as against 4.4 crore in Q2FY19. The company's profit was stressed due to the impact of increase in raw materials prices during the quarter.

For Q3FY19, the company's basic EPS stood at Rs. 3.59 as against Rs. 0.66 in the corresponding quarter a year ago.

On a segmental basis, Generic Drug Substances (GDS) saw maximum growth, while CMS business contributed below than expected revenues, however, the company believe new projects will increase traction in the upcoming quarter. For Q3FY19, the company's operating revenues from prime products accounted for 49 per cent, niche APIs 34 per cent and CMS business 17 per cent.

On Wednesday, the stock of Neuland Laboratories Limited closed at Rs. 588.05 per share, up by Rs. 98.00 or 20.00 per cent on BSE.