IOL Chemicals & Pharma's Stocks Tumble After PAT Slips By 55% QoQ In Q2FY23

IOL Chemicals and Pharmaceuticals net profits for Q2FY23 were recorded at Rs 15.6 crores against Rs 34.9 crores in Q1FY23, a dip of 55 per cent QoQ

Indian pharmaceutical company IOL Chemicals and Pharmaceuticals reported its quarter two results of the financial year 2023 (Q2FY23) on Monday. The pharma company recorded a total income of Rs 546 crores for the quarter that ended on 30th September 2022 against Rs 570 crores registered in Q1FY23, recording a drop of 4.15 per cent quarter on quarter (QoQ).

The pharma company's net profits for Q2FY23 were recorded at Rs 15.6 crores against Rs 34.9 crores in Q1FY23, a dip of 55 per cent QoQ.

IOL's EBITDA for the second quarter stood at Rs 37 crore against Rs 61 crore QoQ and Rs 54 crore registered in the same quarter of the previous year, recording a 40 per cent drop QoQ and 31.4 per cent year on year (YoY).

Whereas the company's EBITDA margins dropped by 4 per cent QoQ, from 10.73 per cent in the June quarter to 6.72 per cent in the September quarter. 

Dr Sanjay Chaturvedi, Executive Director & CEO said, “The global economy is going through a roller-coaster ride as central banks battle inflation through rate hikes. Apart from inflation, the global trade is also impacted by uncertain business environment following Russia’s invasion of Ukraine and frequent lockdowns in China, thereby leading to supply chain disruptions," said Dr Sanjay Chaturvedi, Executive Director & CEO, IOL Chemicals and Pharmaceuticals.

Dr Chaturvedi added that for the Indian API manufacturers and specialty chemicals players, the major challenge comes from volatile input costs with raw material and energy prices both impacting profitability. However, we expect the headwinds to subside going into the second half of this financial year and strongly believe that the worst is behind us in terms of challenges. IOL Chemicals has improved the operational efficiency over last few quarters and we believe this would give us an edge in terms of expanding our margins next quarter onwards.

After the results were announced on Monday, the company's stock fell by 6.53 per cent on Tuesday and was trading at Rs 340.45 a piece as of 11:16 IST. 


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