Makers Laboratories Reports Mixed Q1 Results: Standalone Loss, Consolidated Profit
Makers Laboratories Ltd reported mixed Q1 financial results. Standalone operations showed a net loss of Rs 121.89 crore and 21% lower revenue at Rs 970.07 crore. However, consolidated results improved with a net profit of Rs 43.67 crore, despite a 15.5% decrease in revenue to Rs 2,959.17 crore. The Chemical Manufacturing segment outperformed the Pharmaceutical segment, contributing significantly to the consolidated profit. CEO Samhita Parikh emphasized the company's commitment to improving operational efficiency and capitalizing on growth opportunities.
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Makers Laboratories Ltd, a prominent player in the pharmaceutical and chemical manufacturing sectors, has released its financial results for the first quarter, showcasing a mixed performance across its standalone and consolidated operations.
Standalone Performance
On a standalone basis, Makers Laboratories faced challenges in the first quarter:
- Net loss: Rs 121.89 crore (compared to a profit of Rs 464.11 crore in the corresponding quarter of the previous year)
- Revenue from operations: Rs 970.07 crore (down 21% from Rs 1,228.95 crore year-over-year)
- Earnings per share (EPS): -Rs 2.07 (compared to Rs 7.87 in the same quarter last year)
Consolidated Results Show Resilience
Despite the standalone setback, Makers Laboratories demonstrated resilience in its consolidated performance:
- Net profit: Rs 43.67 crore (improved from a loss of Rs 98.46 crore in the previous year's quarter)
- Revenue from operations: Rs 2,959.17 crore (down 15.5% from Rs 3,500.10 crore in the corresponding period last year)
Segment Performance
Makers Laboratories operates in two reportable segments: Pharmaceutical and Chemical Manufacturing. The segment-wise breakdown reveals:
| Segment | Revenue (Rs in Crore) | PBT (Rs in Crore) |
|---|---|---|
| Pharmaceutical | 1,376.58 | (29.96) |
| Chemical Manufacturing | 2,150.13 | 227.57 |
The Chemical Manufacturing segment demonstrated stronger performance, contributing significantly to the overall consolidated profit.
Management Commentary
Samhita Parikh, Wholetime Director & CEO of Makers Laboratories, stated, "While our standalone operations faced headwinds this quarter, our consolidated results reflect the strength of our diversified business model. We remain committed to improving operational efficiency and capitalizing on growth opportunities in both our pharmaceutical and chemical manufacturing segments."
Looking Ahead
As Makers Laboratories navigates through the challenges in its standalone operations, the company's ability to maintain profitability on a consolidated basis suggests underlying strength in its diversified business model. Stakeholders will be watching closely to see how the company addresses the standalone performance issues while building on the positive momentum in its consolidated results.
The company's board of directors approved these financial results at a meeting held on August 8 in Mumbai, demonstrating their commitment to transparency and timely disclosure to stakeholders.
Historical Stock Returns for Makers Laboratories
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +5.00% | -0.18% | -6.76% | +0.40% | -8.51% | +54.64% |
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