Shares of Akums Drugs and Pharmaceuticals dropped 5% as the company reported weak Q2 earnings and projected a flat revenue outlook for the fiscal year 2024-25. The stock was trading at ₹582.10 as of 9:44 AM, continuing its downward trend post-results.
Key Highlights:
- Revenue Outlook: Akums Drugs expects flat revenue growth for FY25. The company’s Managing Director, Sandeep Jain, stated that margins in the Contract Development and Manufacturing Organisation (CDMO) business, which contributes 78% of total revenue, are expected to remain steady at around 15%.
- Export Contribution: Exports currently account for around 5% of the company’s revenue, and Akums plans to maintain this level.
- Marketing Focus: The company is also investing in its marketing segment to stimulate growth in other areas.
- Q2 Financial Performance: Revenue declined by over 12% YoY in the July-September quarter, down to ₹1,033 crore.
Akums Drugs’ flat revenue projection and the YoY revenue drop have added to investor concerns, reflected in the continued decline of its stock. The company’s reliance on the CDMO business and the flat export contribution signal potential growth challenges, making it a stock to watch closely for any further developments in its financial performance and strategic initiatives.
