“The price movement of equity shares of the company can be largely attributed to the financial results for the first quarter ended June 30, 2019 on August 13, and the subsequent market reactions thereon,” Shilpa Medicare
said on August 21, with reference to significant movement in price.
For Q1FY20, the company reported 55 per cent year-on-year (YoY) drop in its consolidated net profit at Rs 15 crore, due to lower sales. It had a profit of Rs 34 crore in the year-ago quarter. Net sales during the quarter declined 19 per cent at Rs 161 crore on YoY basis.
Last month, Shilpa Medicare
had received five observations from the US health regulator for its Raichur facility after the completion of an inspection between July 22 and 26, 2019.
Shilpa Medicare, in a disclosure on July 29, said the observations made by the US FDA (United States Food and Drug Administration) were not repeat violations. The observations are mostly procedural in nature, it said.
Shilpa Medicare's unit II at Raichur is one of the two bulk drug facilities the company owns, and helps it produce 19 different active pharmaceutical ingredient products, mostly in the oncology space.
At 01:40 pm, the stock was trading 7 per cent lower at Rs 227 on the BSE, as compared to 0.18 per cent rise in the Sensex. A combined 46,259 equity shares have changed hands on the counter on the NSE and BSE so far.