AstraZeneca Pharma gains despite fall in Q2 profit; here’s why

NEW DELHI: Despite the company posting a decline in net profit for the recently concluded quarter, shares of India rose as much as 2 per cent in Wednesday’s session as investors took heart from a sequential rise in revenues.

The scrip touched a high of Rs 3,085 on the National Stock Exchange, registering a gain of 2.3 per cent from the previous close.

In the July-September quarter, AstraZeneca Pharma India reported a decline of 54.65 per cent in net profit to Rs 11.94 crore. In the same period last year, the drug firm had posted a net profit of Rs 26.63 crore.

On a quarter-on-quarter basis, AstraZeneca Pharma’s revenues rose 12.72 per cent in Q2FY22. In the April-June period, the same figure was at Rs 175.40 crore.

On a year-on-year basis, the company’s profitability suffered due to higher operating costs, in spite of gains in inventory efficiency.

For the quarter under review, the company reported a net profit margin of 6.04 per cent as against 12.57 per cent a year ago and 5.84 per cent a quarter ago.

A reduction in inventories led to a sharp fall in net cash generated from operations, an exchange filing showed.

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