Solera’s Stock Active Pharma Sciences 31 Percent in two sessions followed a very weak profit by the company in the quarter that ended in December and the resignation of the Managing Director and Chief Executive Officer Bharath Sesha.
This stock has now lost almost two-thirds of its value from a 52 week high hit last year. The fall arose after stocks rose more than 300 percent between April 2020 and May 2021.
The company on February 9 reported a reduction of 76.5 percent year-to-year in consolidated income to RS 100 Crore for the quarter that ended in December. The poor topline performance leads the company to report a net consolidated net loss of Rs 139.9 Crore for the quarter with a net income of Rs 65.8 Crore.
“Q3FY22 is a challenging quarter for Solara because we make a big decision to rearrange our commercial business strategy. Solara has pursued changes in the commercial model of distribution – causing direct sales to customers in the market that is less regulated,” said the newly appointed CEO and MD Rajendra Juvvadi.
The company said that the December quarter performance was entered mainly due to market demand regulated calmly and a higher cost was driven by an easy-to-yawning material price determination and increased logistics costs, Juvvadi said. “That said, we believe that the situation has come down on the side of demand, and the business will begin to see normal from Q4FY22,” he added.
Skeptical antique broking broking brokerage company on repairs. “With changes in the strategy of the dedicated Ibuprofen factory in Vizag converted to a multipurpose factory for a variety of new products, we think the company will face a higher decrease in gross and opex margins (operating costs) will produce a lower margin,” said a brokerage company on a note .
Brokerage companies cut estimates of income and net income for the company by 18 percent and 62 percent, for 2022-23 because it maintains a ‘selling’ rating on the script.
At 10:37 a.m., Solara’s active shares fell 15 percent at RS 657.95 each at BSE, while the Sensex benchmark fell 910.55 points or 1.55 percent at 58,015.48.
The post Solara Active sinks 31% in 2 days on weak Q3, CEO exit first appeared on Businessely.com.
