Stocks of Neuland Laboratories Limited started its trading session at a price of Rs 2,110.15. The stock remained flat during the first trading half, but, during the last couple of hours, the scrip saw a sharp increase in its stock prices and closed at a price of Rs 2,538.30, which also marked the new 52-week high figure for the company.
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The sudden spike in the share prices is witnessed after the company, through a regulatory filing with the BSE, announced its Q4 as well as annual results for FY22-23. Details of the same have been shared later on in the piece.
Neuland Laboratories Limited is involved in the process of manufacturing active pharmaceutical ingredients (APIs) and also provides end-to-end solutions for the chemistry needs in the pharmaceutical industry. The company derives a majority of its revenue from the European segment.
Having a walkthrough of the consolidated financials reported, the company, on a QoQ basis, has increased its operating revenues from Rs 269 Crores in Q3 v/s Rs 407 crores in Q4. Moreover, the net profits, during the same period, have moved up from Rs 31 crores to Rs 85 crores exhibiting an increase of 174 percent.
Having a yearly comparison of the above-mentioned parameters, the operating revenues took a shift from Rs 951 crores during FY21-22 to Rs 1,191 crores in FY22-23 and net profits, in congruence with the pattern, moved from Rs 64 crores to Rs 164 crores in the same time horizon.
The profitability metrics of the company such as the return on equity (ROE) and return on capital employed (ROCE) have gone down in recent financial years with the former reducing from 10.79 percent during FY20-21 to 7.85 percent in FY21-22 and the latter moving down from 12.81 percent to 9.44 percent keeping the timeframe the same.
Adding onto the concerns, the debt-to-equity ratio of the company, though within the desired levels, has increased from 0.22 in FY20-21 to 0.28 in FY21-22.
Written by Amit Madnani
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