Conference Call with Sequent Scientific Ltd. Management and Analysts on Q4FY23 Performance and Outlook. Listen to the full earnings transcript.
Conference Call with Sequent Scientific Management and Analysts on Q2FY23 Performance and Outlook. Listen to the full earnings transcript.
Pharmaceutical company SeQuent Scientific announced Q2FY23 results: Revenues Rs 3,376 million in Q2FY23 and Rs 6,789 million in H1FY23 EBITDA (pre-ESOP) Rs 150 million in Q2FY23 and Rs 351 million in H1FY23 EBITDA Rs 51 million in Q2FY23 and Rs 161 million in H1FY23 Rajaram Narayanan, Managing Director, stated, “Q2FY23 has been challenging owing to macro environment headwinds even though we continue to see strong performance in select markets. While the overall business grew 2.9% in constant currency terms, the reported revenue declined 3.7% over Q2FY22. EBITDA before ESOP costs stood at Rs 150 million for Q2. Normalised margins (after one-time costs & currency impact) are trending upwards. The API business was subdued due to a slower revival in demand and delays in concluding a few contracts. Our efforts in developing strong partnerships with the top 10 animal health global companies are yielding results and we are confident to restore momentum in this business. We continue to invest in API business across key projects and upgrade our facilities. Our Mahad facility received the prestigious EcoVadis Sustainability Silver Medal and certificate, following by the recent TÜV Nord ISO certifications for Environment, Health & Safety (EHS) in Q1, further validating our commitment to global EHS standards. Our Formulations business grew by 14.8% on constant currency basis, driven by a strong performance in emerging markets and India. We continue to accelerate our efforts in these markets while simultaneously implementing profitability improvement initiatives in our businesses in Europe & Turkey. We continue to believe in SeQuent’s robust business model and are executing on key growth levers. We are pleased to announce that we signed a definitive agreement on November 7, 2022, to acquire 100% stake in Tineta Pharma Pvt Ltd, a company incorporated in India. This acquisition, which is in line with our strategic priority to scale up India formulations business, will be EBITDA accretive and gives a significant boost to our SeQuent 2.0 plans. While the business environment is challenging due to high input costs, currency deterioration in some markets and subdued demand, the company is undertaking multiple initiatives to prioritise growth segments, remain competitive on costs and deepen our engagement with customers. We continue to invest in capabilities and talent required to deliver our ambitious plans and are confident that our initiatives would create a sustainable, long-term advantage for the company as it returns to higher levels of profitable growth.” Result PDF
Pharmaceuticals firm Sequent Scientific announced Q1FY23 Result : Revenues at Rs 3,413 Million, up by 6.5%, Latam and Formulations drive growth Commenting on the Company’s performance, Rajaram Narayanan, Managing Director stated “Our overall sales in Q1 FY 23 grew 6.5% compared to corresponding quarter last year, reflecting a strong, resilient performance in a challenging environment. We continue to progress on our strategy to build a sustainable global business in the area of animal health. The Formulations segment grew 19.5% on constant currency basis, driven by a strong performance in Brazil, within the overall Emerging Markets region. The API business results however, are subdued owing to the exceptional impact of the fire incident at our Vizag plant in May, which hampered operations for a few days. We have now restored the operations in full and are geared to complete the backlog of shipments over the rest of the year. The macro environment will remain challenging on account of volatility in currencies and sustained inflationary cost pressures in raw materials and utilities. However, with our concerted efforts in engaging our long-term partners, cautious price increases, and initiatives on cost management, we expect acceleration in the second half of this financial year. We continue to invest in deepening our partnerships with global players, upgrading our manufacturing facilities, expanding the product pipeline and developing our people.” Result PDF