Vivimed Labs, a Rs 1,380 crore pharma major, has registered strong growth in profits during the first quarter ended June 2015 despite lower growth in net sales. Its consolidated net profit went up by 41 per cent to Rs.24.17 crore from Rs.17.13 crore in the corresponding period of last year and EBDITA improved by 15.8 per cent to Rs.67.22 crore from Rs.58.07 crore. However, its net sales declined by 9.6 per cent to Rs.331.53 crore from Rs.366.54 crore due to lower pharmaceutical sales. With higher profits EPS improved to Rs.14.92 from Rs.10.57 in the last period.
Its pharmaceutical sales declined by 15.2 per cent to Rs.235.77 crore from Rs.277.92 crore due to unfavourable variation in the Euro exchange rates. Speciality chemicals sales improved by 8.1 per cent to Rs.95.75 crore from Rs.88.62 crore.
Santosh Varalwar, managing director and chief executive officer said, “Vivimed started the financial year 2016 on a promising note. Despite a 9.5 per cent year-on-year declined in the revenues, we reported an improvement in our profitability as operations benefited from product, mix, project ramp ups and better customer mining. Margins were also helped to a certain extent on recognition of certain milestone related income in our FDF segment.”
“In the healthcare segment, we are focused on improving the product mix toward higher margin products and on our new product development pipeline for both APIs and FDFs. In the speciality chemicals business, we have been focusing on higher margin products which has improved profitability. Across both the segments, we are working closely with our clients on products and opportunities. We look forward to a continued improvement in the business as well as our capital structure for the rest of the year,” he added.