Indoco Remedies has suffered a setback during the second quarter ended September 2012 and its net profit declined by 12.5 per cent to Rs.12.08 crore from Rs.13.81 crore in the corresponding period of last year. EBDITA also moved down by 3.6 per cent to Rs.22.99 crore from Rs.23.85 crore. However, its net sales improved by 13.5 per cent to Rs.164.53 crore from Rs.144.98 crore.
The company's domestic sales increased by 16.9 per cent to Rs.114.67 crore from Rs.98.08 crore basically due to higher sales from formulation business. Its formulation sales reached at Rs.109.59 core as against Rs.93.16 crore, a growth of 17.6 per cent. Its sales of APIs increased by 3.2 per cent to Rs.5.08 crore. The therapeutic segments which performed well during the quarter are stomatologicals, gastro intestinal, pain analgesics and ophthalmics.
Total exports improved only by 6.5 per cent to Rs.49.70 crore from Rs.46.77 crore. The first shipments of two products were dispatched to Watson Pharma, USA during the quarter marking the beginning of commercialization of products signed with them. Successful US FDA audit of kilolab, API and solid orals facility and analytical lab has paved the way for approval of the ANDAs filed by Indoco.
Discontinuance of AOK tender business for metformin tablets during the quarter has resulted in a temporary dip in the overall sales. However, the new AOK tender that the company has received will more than compensate the loss in sales during the ensuing quarters. Business in Latin America is also showing improvement with first supplies to and orders from Columbia and Jamaica markets, respectively.
For the first half ended September 2012, Indoco's net sales increased by 17.2 per cent to Rs.315.69 crore from Rs.270.72 crore in the similar period of last year. Its net profit declined by 12.2 per cent to Rs.22.43 crore from Rs.25.55 crore. The company's EBDITA moved up by 13.7 per cent to Rs.48.71 crore from Rs.42.86 crore.