Sequent Scientific shares plunge 20% on BSE after company posts steep decline in Q1 profit – check details here

Amid a steep decline in the first-quarter profit, the small-cap pharma company — Sequent Scientific shares plummeted over 20 per cent to Rs 224.25 per share on the BSE intraday trade on Wednesday.

The company on Tuesday reported a sharp 86 per cent year-on-year (YoY) decline in its consolidated profit at Rs 2.65 crore in the June-ended quarter of the financial year 2021-22, as compared to Rs 19.35 crore in the same period a year ago.

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While on the other hand, its revenues during Q1 grew 8.6 per cent YoY to Rs 320.5 crore from Rs 295.3 crore in the year-ago quarter. Similarly, the formulation business reported an over 15 per cent growth, while API business reported de-growth after many quarters of consistent growth.

Excepting strong recovery in API business in the second half of FY22, the management said, “Our strategy for API business continues to play out well as we continue to improve the quality of business with an ever-increasing contribution of regulated markets business, which now stands at 72 per cent versus 66 per cent last year.”

“Despite a slower start to the year, we stay confident and on track of achieving our financial and strategic objectives for the year,” the management further said.

The stock on Wednesday opened weak by over 9 per cent, however, continued decline to eventually hit a day’s low. At around 01:20 pm, the stock is trading 18 per cent lower to Rs 230 per share on the BSE, as compared to a 0.18 per cent decline in the S&P BSE Sensex.

The counter fell over 33 per cent from its 52-week high level at Rs 336 per share, which was hit on June 29, 2021.  

Sequent Scientific is the country’s largest and amongst the ‘Top 20’ global animal health companies, backed by global investment firm ‘The Carlyle Group’ as a promoter. The company has eight manufacturing facilities across Europe, Turkey, Brazil & India with the Vizag site being India’s only USFDA approved dedicated veterinary API facility.