Alembic Pharmaceuticals share price fell over 4 percent intraday to Rs 757 after the company reported a weak set of numbers for the quarter ended September 2021.
On November 10, Alembic Pharmaceuticals reported 49.2 percent fall in its Q2 net profit at Rs 169.29 crore against Rs 333.37 crore and revenue was down 11.3% at Rs 1,292.32 crore versus Rs 1,457.10 crore, YoY.
Earnings before interest, tax, depreciation and amortization (EBITDA) was down 42 percent at Rs 257.2 crore versus Rs 443.5 crore and margin was down at 19.9% versus 30.4%, YoY.
Foreign research house Jefferies has kept the underperform rating with a target at Rs 701 per share.
The Q2 revenue was 3% above estimates but EBITDA/profit miss estimates by 6%/8%.
US business continued to decline while India business performed well. The management’s cost rationalisation programme blunted by increased freight cost.
Company’s F-3 injectables unit gets 10 observations after USFDA re-inspection, it added.
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In a separate press release the company informed that the United States Food and Drug Administration (US FDA) has conducted an inspection at Alembic Pharmaceuticals' Injectable Facility (F-3) located at Karkhadi from October 28, 2021 to November 10, 2021.
The USFDA issued a Form 483 with 10 observations.
None of the observations are related to data integrity and management believes that they are addressable, company said.
The Company is preparing the response to the observations, which will be submitted to the USFPA. The company is committed to maintain the highest quality standards and compliance at all times, it added.
At 09:46 hrs Alembic Pharmaceuticals was quoting at Rs 766.75, down Rs 26.45, or 3.33 percent on the BSE.