Shares of Solara Active Pharma Sciences Limited crashed 19.98 per cent to hit an all-time low of Rs 620.2 on BSE. The stock came under tremendous selling pressure on Thursday after the company reported a weak set of numbers for the quarter ended December 2021. It has tanked over 35 per cent in just two trading sessions.
The company reported a consolidated net loss of Rs 140 for the quarter ended December 2021 as against a net profit of Rs 65.78 crore in the year-ago quarter. The company's revenue from operations declined 77 per cent to Rs 100 crore during the quarter.
The stock opened 17 per cent lower at Rs 642 against the previous close of Rs 775.05 on BSE. At 14:30 hours, the shares were trading 19.71 per cent lower at Rs 622.25.
Market cap of the firm fell to Rs 2,236.76 crore. The shares stand lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
Rajender Rao Juvvadi, the newly appointed MD and CEO of the company said, “Q3FY22 was a challenging quarter for Solara as we took a major decision to reset our commercial business strategy. Solara has pursued a change in the commercial model from distribution-led to direct sales to customers in the less regulated markets."
"While this decision had a one-time impact on the revenues and profitability, we are confident that the new model will deliver a significant long-term value for the Company and enables a higher focus on customer-centricity,” Juvvadi added.
Besides this one-off impact, he noted that Solara’s Q3FY22 performance was muted mainly due to subdued regulated market demand and higher costs driven by volatile material pricing environment and increased logistics cost. That said, the company believes that the situation has bottomed out on the demand side, and the business would start seeing normalcy from the Q4FY22.
In a separate press release, the company announced that Bharath R Sesha has submitted his resignation as managing director and chief executive officer and director of the company to pursue interests outside the company.
Rajender Rao, who currently is the executive vice-chairman of the company, has been given the expanded responsibility of MD and CEO.
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