Nectar Lifesciences, a Rs 775 crore plus pharma giant from Punjab, has suffered a heavy setback during the year 2008-09 on account of lower sales, and higher interest, depreciation, and employees costs. Its net profit declined by 29.1 per cent to Rs 52.97 crore from Rs 74.74 crore in the previous year. With fall in profits, its earnings per share moved down to Rs 3.47 from Rs 4.97 in the last period. The company's net sales declined by 1.1 per cent to Rs 727.97 crore from Rs 735.95 crore.
The board of directors has recommended equity dividend of 10 per cent for the year 2008-09. Its equity capital stood at Rs 15.23 crore and its reserves and surplus touched to Rs 288.13 crore. Promoters are holding 64.46 per cent of its share capital.
The company's employees cost went up by 45.6 per cent to Rs 28.15 crore from Rs 19.33 crore. Further, its depreciation provision went up by 55.6 per cent to Rs 30.31 crore from Rs 19.47 crore and its other expenditure increased by 32.6 per cent to Rs 75.99 crore from Rs 57.30 crore. The company's interest burden increased by 81.3 per cent to Rs 49.62 crore from Rs 27.37 crore in the previous year.