Indoco Remedies, a Rs.700 crore plus pharma major from Mumbai, has registered strong net profit growth of 118 per cent during the first quarter ended June 2014 to Rs.20.04 crore from Rs.9.18 crore in the corresponding period of last year. Its net sales also jumped up by 33.7 per cent to Rs.197.95 crore from Rs.148.05 crore. With smart improvement in profits, its EPS moved upto Rs.2.17 as against Rs.1 in the last period.
The company's domestic sales increased by 23.1 per cent to Rs.128 crore from Rs.104.01 crore and its international sales improved by 58.8 per cent to Rs.69.95 crore from Rs.44.04 crore. The company acquired 100 stake in Xtend Industrial Designers and Engineers Pvt Ltd and became a 100 per cent subsidiary.
Aditi Kare Panandikar, managing director, said, “The rise in the net profit is attributed to the 59 per cent growth in the high-margin international business coupled with robust growth in domestic business. Compared to industry average growth rate of 8.8 per cent, the company's domestic formulation business registered a 24.4 per cent revenue growth, aided by legacy brands as well as new launches.”
The company is planning to file 10 ANDAs from its site during the current year, of which 3 have already been filed during the first quarter under review. The company received US FDA nod for its sterile facility (plant II) and solid dosages facility (plant III) located in Verna, Goa. The first quarter has seen 7 product launched across 5 division and planning to launch a minimum of 25 new products annually through its 8 marketing divisions.
Talking to shareholders at 67th AGM, Suresh Kare, chairman, said, “Indoco will not be significantly impacted from the National Pharmaceutical Pricing Authority order in July 2014 that brought 39 formulations under price-control. The order impacts the ceiling prices of molecules falling in chronic segment.”
The company is now acquiring additional land in Goa for expansion of its R&D activities.