Shares of Sequent Scientific Ltd., a leading animal healthcare company, tumbled as much as 8 percent on Wednesday after the company reported a consolidated net loss of Rs 3.75 crore in the September quarter.
Consolidated sales declined 3.7 percent to Rs 337.61 crore as demand was impacted due to a delay in some contracts and a slower-than-expected revival in demand for Active Pharmaceutical Ingredients or APIs.
The company’s EBITDA stood at Rs 3.78 crore, down 81.5 percent from Rs 20.4 crore in the year-ago quarter. While margin came down to 1 percent from 5.6 percent during the year-ago period.
Sequent Scientific also announced that it has signed a definitive agreement to acquire a 100 percent stake in Tineta Pharma Private Ltd., a company specialising in the livestock segment, for an enterprise value of Rs 218 crore.
This will be paid as cash consideration of Rs 153 crore and preferential allotment of Sequent’s equity shares worth Rs 65 crore. The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of the current fiscal year.
Shares of Sequent Scientific are trading 6.4 percent lower at Rs 98.70.
