Strides Shasun Ltd. slumped after its June quarter earnings fell short of analyst estimates.
Net profit rose 145 percent to Rs 26.04 crore, compared to Rs 10.6 crore in the April to June quarter last year, according to the company's filing to the stock exchanges. The figure was way below the Rs 82.7 crore consensus estimate of analysts tracked by Bloomberg.
Net sales rose 44.6 percent to Rs 845 crore. Earnings before interest, tax, depreciation and amortisation grew 85.7 percent year on year to Rs 133.12 crore, while EBITDA margin expanded to 15.2 percent from 11.7 percent earlier.
The company's shares closed almost 6.4 percent lower at Rs 1,040.
Business Reorganisation
Strides Shasun also announced that it will sell off its Active Pharmaceutical Ingredient business to a wholly owned subsidiary. This transaction is expected to be completed by the third quarter of this financial year, the company said in its filing to the exchanges.
The business requires a different level of focus. With the new set of regulatory and statutory compliance, the commodity API business will need its own leadership team and strategy.Srides Shashun's Exchange Filing
The company also announced the completion of the acquisition of strategic stake in Australia based Generic Partners Holding. The deal was first announced in February this year.
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