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Business News/ Markets / Stock Markets/  Sanofi India gains 3% after rising 8% a day post demerger announcement

Continuing its market rally post the demerger news of consumer healthcare business, Sanofi India shares were trading as much as 3% higher on BSE during intraday trade. The company stock was trading 3.07% higher at 6415 on BSE at 1:17 pm.

It is worth noting that the market rally Sanofi India witnessed on Thursday was its biggest one in last 33 months. The stock was up by around 8 per cent on BSE on Thursday after the demerger news. Despite the stock rally, stock need to make some more gains to regain its year-old value. Sanofi stock value declined by 1.31% in last one year.

Sanofi India's board announced the demerger of its consumer healthcare business. The separated business will be a fully-owned subsidiary of the company. The demerged company will be named as Sanofi Consumer Healthcare India Limited.

Sanofi's consumer healthcare business includes a wide range brands like Allegra, Combiflam, DePURA , Avil, and others. The company posted a 20.1 per cent decline in its net profit to 190.4 crore in Q4 FY23 against a net profit of 238.4 crore in the corresponding quarter in FY22.

The revenue from operations increased by 4.2 per cent to 736.5 crore in March quarter from 707 crore during the same quarter a year ago.

The operating profit, aka EBITDA, was also up by 18.2 per cent to 230 crore as against 194.5 crore in the year ago. On the other hand, EDITDA margin increased by 31.2 per cent as against 27.5 per cent during the same period a year ago.

In its proposed demerger, Sanofi India will enable a different operating model for the consumer healthcare business. It would also fit for a fast-moving consumer healthcare company.

“The proposed demerger will facilitate pursuit of scale and independent growth plans and also enable more focused management and stronger leverage of specific global resources within Sanofi group," Sanofi India said in its filing.

The total turnover of the consumer healthcare arm of Sanofi India was 728 crore in the December quarter of FY23. The share of consumer healthcare undertaking was about 28 per cent of the total turnover of the company for the said year.

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Updated: 12 May 2023, 02:26 PM IST
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