Ipca Laboratories, a Rs.3,200 crore Mumbai based pharma major, has suffered heavy setback during the third quarter ended December 2014 and its net profit declined sharply by 70.2 per cent to Rs.41.53 crore from Rs.139.12 crore in the corresponding period of last year. EBDITA also declined by 42.7 per cent to Rs.127.58 crore from Rs.222.76 crore. Its standalone net sales declined by 10.7 per cent to Rs.734 crore from Rs.822 crore.
Its formulations sales declined by 8 per cent to Rs.584 crore and API sales declined by 20 per cent to Rs.150 crore. Its domestic formulations sales improved by 13.4 per cent to Rs.279 crore from Rs.246 crore. However, formulations exports declined by 21 per cent to Rs.305 crore from Rs.389 croer. Its domestic APIs sales declined by 12 per cent to Rs.37 crore from Rs.42 crore and APIs exports declined by 22 per cent to Rs.114 crore from Rs.145 crore.
During July 2014, the company received certain inspection observations in Form FDA 483 from the US FDA for its API manufacturing facility situated at Ratlam. Consequent to which the company voluntarily decided to temporarily suspend API shipments from this manufacturing facility for the US markets till this issue is addressed. US FDA has issued an import alert to the said manufacturing facility on January 22, 2015.
However, the four API's viz hydroxychloroquine sulfate, propanolol hydrochloride, trimethoprim and ondansetron manufactured at the said manufacturing facility are excluded from the import alert.
For the nine months ended December 2014, Ipca's standalone net sales declined by 0.8 per cent to Rs.2,437 crore from Rs.2,456 crore in the similar period of last year. Its net profit declined by 27 per cent to Rs.248 crore from Rs.340 crore. EPS went down to Rs.19.68 from Rs.26.97 in the last period. Its domestic formulations improved by 16 per cent to Rs.900 crore from Rs.773 crore. However, its formulations exports declined by 8 per cent to Rs.999 crore from Rs.1,089 crore. Further, APIs sales declined by 9 per cent due to lower export sales at Rs.393 crore as against Rs.467 crore in the same period of last year. Its sales of APIs in the domestic market went up by 14 per cent to Rs.146 crore from Rs.128 crore.