Neuland Laboratories (NLL) Shares Plunge 13.5% Following Disappointing Q4 Results: A Detailed Analysis

  • Shares of Neuland Laboratories experienced a significant drop of over 13 percent in intra-day trading on Monday, following the release of the pharmaceutical company’s Q4FY24 results, which fell short of market expectations.
  • The company reported a 20 percent year-on-year (YoY) decrease in net profit for Q4FY24, amounting to ₹67.6 crore, compared to ₹84.5 crore in the same quarter the previous year. Total income also saw a 6 percent YoY decline, falling to ₹390.4 crore from ₹415 crore in the corresponding quarter last year.
  • The stock hit a low of ₹6,150, a 13.5 percent drop, distancing itself by over 21 percent from its record high of ₹7,794 on April 18, 2024. Despite this, the stock has still seen a rise of over 114 percent from its 52-week low of ₹2,518.55 on May 12, 2023, and has gained 176 percent in the last year and 18 percent in 2024 YTD.

Neuland Laboratories’ Q4FY24 results disappoint, leading to a significant drop in stock prices. Despite this, the stock has seen considerable growth over the past year.

Operating Front and Net Debt

The firm’s EBITDA in Q4FY24 was down 12 percent to ₹112.2 crore compared to ₹127.8 crore in Q4FY23. Its EBITDA Margin also decreased 202 bps YoY to 28.7 percent in Q4FY24. However, the company’s Net Debt declined to ₹(32.6) crore at the end of Q4FY24, compared to ₹63.0 crore at the end of Q4FY23 and ₹(44.6) crore at the end of Q3FY24.

Financial Year 2023-24 Performance

Despite the disappointing Q4 results, the company’s net profit for the financial year 2023-24 (FY24) soared 83.7 percent YoY to ₹299.6 crore from ₹163.1 crore in FY23. Total income also jumped 30.8 percent YoY to ₹1,571 crore from ₹1,200 crore in FY23. EBITDA surged 68.8 percent YoY to ₹474.5 crore in FY24, and EBITDA Margin increased by 680 bps YoY to 30.2 percent.

Company Outlook and Dividend Announcement

Suchet Davuluri, Vice-Chairman and Chief Executive Officer of Neuland Labs, expressed satisfaction with the company’s FY24 performance, attributing the revenue growth to high growth in the CMS business and steady growth of the Specialty GDS business. The firm’s board of directors has also recommended a final dividend of ₹14/- (140 percent) per equity share for FY24, payable five days after shareholder approval at the 40th Annual General Meeting (AGM).

Conclusion

Despite the disappointing Q4FY24 results, Neuland Laboratories has seen significant growth in the past financial year. The company’s focus on optimizing costs and processes, coupled with growth in its CMS and Specialty GDS businesses, has contributed to this performance. However, the recent drop in stock prices indicates that investors may need to exercise caution and closely monitor the company’s future performance.

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Gideon Wolf
Gideon Wolfhttps://en.coinotag.com/
GideonWolff is a 27-year-old technical analyst and journalist with extensive experience in the cryptocurrency industry. With a focus on technical analysis and news reporting, GideonWolff provides valuable insights on market trends and potential opportunities for both investors and those interested in the world of cryptocurrency.
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