Following the release of Q4 FY23-24 and FY24 financial results, which showed a decline in the net profit by 44.4 percent YoY, the share price of a leading pharmaceutical company headquartered in Chennai dipped by 10.3 percent on BSE to hit an intraday low at Rs. 984.15 in the trading session of Friday.
With a market capitalisation of Rs. 5,075.5 crore, at 10:45 a.m., the shares of Orchid Pharma Limited were trading in the red at Rs. 1,000.7, down by 8.8 percent.
The fluctuations in the share prices were observed after the company announced the financial results for Q4 FY23-24 and FY24, through the recent filings with the stock exchanges on Thursday post-market hours.
The income from operations stood at Rs. 217 crore in Q4 FY23-24, indicating a growth of 3.3 percent YoY from Rs. 210 crore in Q4 FY22-23, while on a quarter-on-quarter basis, it fell by 1.7 percent from Rs. 220.6 crore in Q3 FY23-24.
Orchid Pharma witnessed a rise in the net profit by 11.8 percent QoQ from Rs. 29.43 crore in Q3 FY23-24 to Rs. 32.95 crore in Q4 FY23-24, but declined by 44.4 percent YoY from Rs. 59.14 crore in Q4 FY22-23 to Rs. 32.95 crore in Q4 FY23-24.
On a year-on-year basis, the company’s Earnings Before Interest, Taxes, Depreciation, and Amortisation, or EBITDA stood at Rs. 41.8 crore in Q4 FY23-24, as against Rs. 41.4 crore in Q4 FY22-23, registering a growth of 1%.
In Q4 FY23-24, Orchid Pharma’s novel drug Enmetazobactam was approved in both the US and Europe and will be launched shortly, marking a significant achievement for India since this is the first drug invented in India to reach this landmark.
On 31st March 2020, Dhanuka Group, through its pharmaceutical arm, Dhanuka Laboratories Ltd., acquired Orchid Pharma Ltd. through CIRP (Corporate Insolvency Resolution Process) under the IBC (Insolvency and Bankruptcy Code).
The stock has delivered 76.2 percent of positive returns in six months, while 144.6 percent of multibagger returns in the last one year. So far in 2024, the company has given 39.8 percent of positive returns.
Orchid Pharma Limited, a vertically integrated firm spanning the entire pharmaceutical value chain with proven credentials in research, manufacturing, and marketing, was established in 1992 as an export-oriented unit (EOU).
The company is one of just three USFDA-approved facilities worldwide, and the only one from India, in the Production of Quality Cephalosporins, particularly sterile products.
Written by Shivani Singh
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