Nectar Lifesciences, a Rs.885 crore pharma
company from Mohali, has suffered a setback during the second quarter
ended September 2010 on account of higher taxation and lower sales. Its
net profit declined by 17 per cent to Rs.24.15
crore from Rs.29.10 crore in the
corresponding period of last year. Its net sales also declined by 15 per
cent to Rs.215.73 crore from Rs.253.76 crore. With lower profits, its
earnings per share declined to Rs.1.08
from Rs.1.91 in the last period. The
EBDITA, however, improved by 7.3 per cent to Rs.54.34
crore from Rs.50.66 crore. The company
provided Rs.5.31 crore for tax during the
quarter against nil in the last period.
The company allotted 260
lakh equity shares on preferential basis in February to non-promoters
and 460 lakh equity shares underlying GDRs on February 26, 2010. After
said allotments,the paid up equity stands increased from Rs.15.23 crore to Rs.22.43
crore. This also impacted its EPS during the quarter and half year
ended September 2010.
For the first half of year 2010-11, Nectar
recorded net sales of Rs.396.97 crore as
against Rs.445.55 crore, a de-growth of
10.9 per cent. Its net profit also declined by 19.6 per cent to Rs.39.83 crore from Rs.49.54
crore in the similar period of last year. The company provided Rs.10.53 crore for tax during the first half as
compared to nil in the last period.