Neuland Labs profit drops sharply in Q3 as sales slow and costs bite

Drug firm Neuland Laboratories Ltd. posted a 60% decline in net profit to ₹40.6 crore for the third quarter of the current financial year on Monday, February 9, compared with ₹101.6 crore in the year-ago period.

Revenue for the quarter came in at ₹439.7 crore, down 10.5% year-on-year and 14.8% sequentially. The company had reported revenue of ₹398 crore in the corresponding quarter last year and ₹516 crore in the previous quarter.

Earnings before interest, tax, depreciation and amortisation (EBITDA)

declined 10.5% year-on-year to ₹77.3 crore, while the EBITDA margin contracted by 410 basis points to 17.6% from 21.7%.

During the December quarter, Neuland approved a capital expenditure of ₹189 crore to set up a new research and development centre in Hyderabad.

Shares of Neuland Laboratories settled at ₹13,030 apiece on the NSE, down 1.30% on the day.

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