Neuland Laboratories, a Hyderabad based Rs 200 crore plus pharma company, has suffered setback during the first quarter ended June 2008 on account of foreign exchange loss as against gain in the previous period. The company's net profit declined by 63.7 per cent to Rs 1.02 crore from Rs 2.78 crore in the corresponding period of last year. The company's EBDIT, however, jumped by 115.3 per cent to Rs 7.75 crore from Rs 3.60 crore in the last period.
The company's net sales, however, increased by 25.1 per cent to Rs 58.52 crore from Rs 46.76 crore. The company's exports increased by 31.3 per cent to Rs 46.58 crore during the first quarter of 2007-08 from Rs 35.47 crore in the similar period of last year. Its domestic sales increased marginally to Rs 11.94 crore from Rs 11.29 crore.
The company incurred foreign exchange loss of Rs 1.94 crore during the period under review as against a profit of Rs 2.40 crore, which impacted its bottom line adversely.
D Sucheth Rao, chief operating officer, said, "The strong growth plan for 2007-08 is reflected in our sales which soared to Rs 58.51 crore. Neuland's first quarter results is a clear indication of how our business plans, projects and targets are in place and we are moving towards achieving the planned growth and profitability for 2008-09. The growth has been despite the foreign exchange loss of Rs 1.93 crore. The net profits would have been higher if not for this."
Rao added, "Our growth is a demonstration of our sturdy business model which is based on those achieving the highest level of reliability. This is strongly complemented by our product portfolio, manufacturing and R&D capabilities. The increased market share for our APIs where Neuland is moving towards a leadership position is an indication of the success of the company's strategy for manufacturing high-end, APIs which meet stringent regulatory norms."