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.”