Why Did Akums’ Profit Plummet by Nearly 33% in Q4?

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Why Did Akums’ Profit Plummet by Nearly 33% in Q4?

Synopsis

Akums Drugs and Pharmaceuticals faces a challenging Q4 with significant profit decline. Find out how they navigated financial troubles and what this means for their future. Dive into the details of their latest financial report and discover the shifts in income and expenditure.

Key Takeaways

  • Akums' Q4 net profit decreased by 32.89%.
  • Total income fell to Rs 360 crore.
  • Year-on-year, the company turned a profit from a previous loss.
  • Operational income increased by 9.14% annually.
  • Expenditure showed a decline from the previous year.

Mumbai, May 27 (NationPress) Akums Drugs and Pharmaceuticals unveiled its financial performance for the fourth quarter (Q4), revealing a staggering 32.89% decline in net profit on a sequential basis, falling to Rs 27.58 crore from Rs 41.16 crore in the December quarter (Q3).

The company also reported a sequential decrease in total income, which dropped to Rs 360 crore in Q4, reflecting a 2.9% decline compared to Rs 371 crore in the December quarter.

In Q4 of FY25, Akums’ income from operations fell to Rs 328 crore, a 2.6% drop from Rs 337 crore in the previous quarter.

Nonetheless, when comparing year-on-year figures, the company transitioned from losses to profitability. In the March quarter of FY24, it reported a loss of Rs 57.86 crore, as indicated in its exchange filing.

On an annual basis, the company's operational income surged by 9.14%, increasing from Rs 298 crore in the March quarter of FY24.

Additionally, total income saw a 10.76% rise year-on-year, moving from Rs 325 crore in the March quarter of FY24.

The total expenditure for the company in the March quarter of FY25 stood at Rs 323 crore, which is 2.2% higher than Rs 316 crore in the December quarter. However, it marked a 13.17% annual decrease from Rs 372 crore in the March quarter of FY24.

Throughout FY25, the company's total profit reached Rs 161 crore, a significant turnaround from a loss of Rs 165 crore in FY24.

Despite these gains, Akums’ total income during this period fell by 6.6%, declining from Rs 1,538 crore to Rs 1,435 crore, as per its filing.

Point of View

Akums' financial report highlights both challenges and resilience. While the sequential profit decline raises concerns, the year-on-year profitability signals potential recovery and growth. The market should closely monitor how management addresses these fluctuations moving forward.
NationPress
13/06/2025

Frequently Asked Questions

What was the net profit of Akums in Q4?
Akums reported a net profit of Rs 27.58 crore in Q4, marking a 32.89% decline sequentially.
How did Akums' total income change in Q4?
The total income in Q4 decreased to Rs 360 crore, a 2.9% drop from the previous quarter.
What was Akums' performance compared to the previous year?
Year-on-year, Akums shifted from a loss of Rs 57.86 crore in Q4 FY24 to profitability in Q4 FY25.