Indoco Remedies has failed to generate any growth in profits during the second quarter ended September 2015 basically due to higher employees cost as well as higher R&D expenditure. Its net profit improved marginally to Rs.22.62 crore from Rs.22.41 crore in the corresponding period of last year. Its EBIDTA declined by 5.9 per cent to Rs.45.75 crore from Rs.48.63 crore. Its R&D expenditure increased by 82.6 per cent to Rs.8.93 crore from Rs.4.89 crore and employees cost increased by 28.3 per cent to Rs.46.13 crore from Rs.35.96 crore. With stagnant profit, its EPS worked out to Rs.2.45 as against Rs.2.43 in the last period.
.Its net sales improved only by 9.3 per cent to Rs.247.67 crore from Rs.226.42 crore. Though its domestic sales increased by 1.2 per cent to Rs.146 crore, its exports increased by 23.6 per cent to Rs.101 crore from Rs.81.72 crore. Its domestic formulation sales increased only by 0.5 per cent to Rs.138.05 crore from Rs.137.40 crore. It introduced six new products. Two of the new products are in pain/analgesics, two in stomatological and one each in gynaec & anti-diabetic segment. Domestic API sales moved up by 11.7 per cent to Rs.7.64 crore from Rs.6.84 crore.
Its export of formulations went up by 23.7 per cent to Rs.92.87 crore and APIs exports moved up by 3.6 per cent to Rs.6.91 crore. The company has 61 ANDAs at various stages and it received 9 approval so far. It completed successfully the US FDA inspection of its sterile plant and finished dosage plant at Goa during the quarter.
Aditi Panadikar, managing director, said, “Company's re-structuring process of domestic marketing divisions including field force expansion, taken up in the beginning of the year is expected to yield good results in the future. Performance of new products and prescription trend as per market data (CMARC & AWACs) have already started indicating positive trend. The international business has also done well by recording a growth of 24 per cent during the second quarter.”
Indoco's standalone net sales for the first half ended September 2015 increased by 9.3 per cent to Rs.463.64 crore from Rs.424.37 crore and its net profit improved marginally to Rs.42.89 crore from Rs.42.45 crore. EPS worked out to Rs.4.65 as against Rs.4.61 in the last period. Its domestic sales improved by 2.2 per cent to Rs.278.82 crore and its international sales improved by 21.8 per cent to Rs.184.82 crore.