Indoco Remedies has received setback during the first quarter ended June 2011 on account of higher employee cost and R&D expenditure. Further, the margins of few products in the anti-infective therapy segment faced pricing pressure from competitors. Its net profit declined by 20.8 per cent to Rs.11.74 crore from Rs.14.82 crore in the same period of last year. Its EBDITA worked out lower at Rs.18.60 crore as compared to Rs.19.07 crore. The net sales increased by 12.7 per cent to Rs.125.55 crore from Rs.111.38 crore. With fall in profits, its earnings per share moved down to Rs.9.56 as against Rs.12.06 in the last period.
The company's sales in India touched to Rs.81.91 crore from Rs.75.54 crore in the similar period of last year. Domestic formulation sales worked out to 62.3 per cent of its total domestic sales and that of APIs sales 2.9 per cent.
Its exports sales increased to Rs.43.64 crore from Rs.35.84 crore and exports to regulated market increased by 31.7 per cent to Rs.32.97 crore from Rs.25.03 crore. Indoco's formulation exports improved by 24.5 per cent to Rs.40.88 crore from Rs.32.83 crore.
The staff cost increased due to additional field staff recruitment across the marketing divisions in the domestic market. The major additions have taken place in Indoco and Spade marketing divisions so as to cover a larger market area and boost up the sales. The marketing expenses on advertisement and sales promotion has also increased to Rs.5.2 crore from Rs.3.6 crore during the same quarter last year.
Indoco is looking at providing high level analytical services to global generic and innovator pharmaceutical companies. An expansion of API plant at Patalganga is being planned, which will be constructed on a plot area of 4000 sq.ft. This plant will have a capacity to manufacture APIs like atorvastatin, pregabalin, rasagiline, bosentanand febuxostat.