Sun Pharma Advanced Research Company shares declined 5 percent on May 22, as the quarterly loss widened to Rs 82 crore in the March FY23 quarter, from a loss of Rs 70.49 crore reported in the year-ago period.
This was despite the company reporting healthy topline growth. The dismal performance at operating level hit the bottomline.
Revenue from operations for the quarter came in at Rs 47.7 crore, growing 89 percent from over a year-ago period.
At the operating level, the EBITDA loss also widened to Rs 89.57 crore in the quarter ended March FY23, from Rs 66.54 crore in the same quarter last fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.
There has been a significant increase in clinical trial expenses, product development expenses, and professional charges during the last quarter of financial year 2022-23.
Clinical trial expenses/product development expenses increased by 74 percent YoY to Rs 58.3 crore, and professional charges rose 84.6 percent to Rs 33.87 crore compared to the March FY22 quarter, Sun Pharma Advanced Research Company said in its filing to exchanges.
During the quarter, the subsidiary of Sun Pharma paused the development of SC0- 120 programme due to changing clinical landscape. Pursuant to this, it has made provision for committed costs for this programme estimated at Rs 27 crore, which included clinical trial expenses / products development expenses.
Meanwhile, the board of directors of the company also approved fund raising of up to Rs 1,800 crore.
The stock was trading at Rs 184.55, up 5.07 percent with volume of 25.49 lakh shares on the NSE at 15 hours IST.