Orchid Pharma shares plunge 8% after Q4 PAT declines 44%, total revenue up 9%

Orchid Pharma on Thursday announced a 44.27% year-on-year (YoY) decline in its consolidated net profit for the fourth quarter of the fiscal year 2024 at ₹32.95 crore. The company’s sales during the quarter rose by 3.43% YoY to ₹217.1 crore while total revenue grew 8.9% YoY to ₹230.46 crore. Shares of the company plunged over 8% on Friday morning.

The company’s operating earnings before interest, taxes, depreciation, and amortisation (EBITDA) declined by 27% YoY at ₹28.92 crore.

For the financial year 2024, the company’s net profit grew 99% to ₹92.16 crore. The net sales during the year grew 23% to ₹819.36 crore. The total revenue in FY24 rose 24% to ₹850.23 crore. The company’s operating EBITDA for the year was higher by 32.36% YoY at ₹110.66 crore.

During the fourth quarter of the financial year, the company’s novel drug Enmetazobactam got approval in the United States as well as Europe. The drug, which helps combat anti-microbial resistance (AMR), is set to be launched soon, according to the firm. AMR is said to claim the lives of 50 lakh people every year, globally.

Manish Dhanuka, managing director of Orchid Pharma said the firm has concentrated on maximising capacity utilisation while maintaining stringent cost controls. “The positive outcomes of these initiatives, combined with a robust product pipeline and Capex of more than ₹800 crore over the next few years, indicate promising future prospects,” he said.

The company also said that implementation of the PLI 7-ACA program in the near future will lead to further comprehensive backward integration of its supply chain. The company believes its investments and upcoming product launches will help solidify its position in the Cephalosporin Antibiotics space.

Orchid Pharma is a vertically integrated company spanning the entire pharmaceutical value chain involved in research, manufacturing, and marketing. The Dhanuka Group, through its pharmaceutical arm, Dhanuka Laboratories had taken over the reins of Orchid Pharma through corporate insolvency resolution process on March 31, 2020.

Shares of the company have risen by nearly 37% since the beginning of the year. The stock has gained nearly 141% in the last one year.