The share price of Alembic Pharmaceuticals fell 6 percent after the company reported weaker-than-expected operational revenue for the March quarter. The company posted a 12 percent rise in its net profit in Q4 at Rs 251 crore as against Rs 225 crore during the corresponding period last year.

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The stock fell as much as 5.8 percent to the day's low of Rs 948 per share on BSE.

The company's net sales were up 6 percent to Rs 1,280 crore, from Rs 1,207 crore. Its consolidated EBITDA margin declined 45 basis points (bps) to 26.7 percent in the March quarter (Q4FY21).

For the fiscal year ended March, the company posted a net profit of Rs 1,178 crore as against Rs 829 crore in 2019-20, Alembic Pharma said.

The consolidated revenue from operations stood at Rs 5,393.13 crore. It was Rs 4,605.75 crore for the previous fiscal, it said.

The board has recommended a dividend of Rs 14 per equity share having face value of Rs 2 each.

ICICI Securities, however, said Alembic Pharma’s Q4 topline performance was in line with expectation (albeit skewed), impacted by the decline in US sales.

"Profitability was better-than-expected due to lower-than-expected staff costs, other expenditure (ex-R&D) and a lower tax rate," ICICI Securities said.

In the API segment, with Chinese players returning to the market, the management expects some sales moderation but steady growth. Apart from this, the management is aggressively spending on R&D and manufacturing for US oncology, injectables, derma segments which provide growth optimism for medium to long-term but may impact near-term margins, the brokerage firm said.

First Published:May 5, 2021 1:51 PM IST