Shares of Jubilant Pharmova declined over 11 percent in intra-day deals on Tuesday on the back of weak March quarter (Q4FY23) results and a new USFDA (United States Food and Drug Administration) observation.
The stock lost as much as 11.2 percent to its day's low of ₹318.50. It is now down 33 percent from its 52-week high of ₹423.55, hit on December 9, 2022, but has also gained 33 percent from its 52-week low of ₹268.8, hit on March 29, 2023.
The company's net loss widened to ₹98 crore in the March quarter of FY23 from ₹15.67 crore in the previous quarter (December quarter - Q3FY23) on the back of weaker margins and higher expenses. It had posted a profit of ₹59.55 crore in the year-ago period.
The company attributed the net loss in the quarter to an impairment charge of ₹171 crore related to certain intangible assets.
Its revenue, on the other hand, rose 9.7 percent to ₹1,660.9 crore versus ₹1,514.4 crore in the year-ago period. Its EBITDA ( Earnings before interest, taxes, depreciation, and amortization) margin also contracted to 12.2 percent from 15.5 percent in the same period last year.
In the quarter, total expenses for the firm rose 26 percent to ₹1,785.57 crore from ₹1,420.24 crore in Q4FY22.
Adding to the weak results, the United States Food and Drug Administration (USFDA) classified its inspection of the company's Montreal Canada contract manufacturing (CMO) facility as Official Action Indicated (OAI). This further weakened the sentiment.
"The company’s wholly owned subsidiary, Jubilant HollisterStier General Partnership (JHSGP), has announced that it has received a communication from the USFDA through which the latter intimated that pursuant to its February 2023 audit of the CMO facility at Montreal Canada, the USFDA has determined inspection classification of the facility as OAI," Jubilant Pharmova said in an exchange filing.
The USFDA also mentioned that it may withhold approval of any pending applications or supplements in which this facility is listed, the company added.
Meanwhile, for the full year FY23, the company posted a loss of ₹648.88 crore as against a profit of ₹413.02 crore in FY22. Its revenue in FY23 came in at ₹6,281.73 crore from ₹6,130.16 crore in FY22.
The scrip has shed over 11 percent in the last 1 year as well as in 2023 YTD. However, it has risen around 7 percent in May following an 11.8 percent jump in April. But, the stock lost 6 percent in Jan, 13 percent in Feb and around 9 percent in March.
