Ipca Laboratories, a Rs.3,000 crore plus pharma major which recently received US FDA warning letter, has suffered heavy setback during the third quarter ended December 2015 and its standalone net profit declined sharply by 44.2 per cent to Rs.23.18 crore from Rs.41.53 crore in the corresponding period of last year. Its net sales also declined by 8.2 per cent to Rs.674.27 crore from Rs.734.15 crore. With lower net profit, EPS declined to Rs.1.84 from Rs.3.29 in the last period. The company has written off Rs.24.47 crore worth of materials on account of regulatory issues, which cost is included in cost of materials consumed.
The sales of domestic formulations increased by 11 per cent to Rs.308.38 crore from Rs.278.67 crore in the similar quarter of last year. However, its APIs exports declined by 25 per cent to Rs.27.82 crore from Rs.37.03 crore. Its formulations exports declined by 27 per cent to Rs.221.29 crore from Rs.305.09 crore. APIs exports improved by 3 per cent to Rs.116.78 crore from Rs.113.36 crore.
Despite poor performance, Ipca scrip moved up by Rs.19.65 on BSE to Rs.638.95 after announcement of financial results. The scrip touched to its yearly highest level at Rs.888 on August 19, 2015.
For the first nine months ended December 2015, Ipca's net sales declined by 11.2 per cent to Rs.2,164 crore from Rs.2,437 crore and its net profit declined sharply by 77.6 per cent to Rs.53.76 crore from Rs.239.57 crore. EPS worked out to Rs.4.26 as against Rs.18.98 in the last period. Though its sales of formulations in domestic market improved by 6 per cent to Rs.957.18 crore, its formulation exports declined by 33 per cent to Rs.673.55 crore. APIs sales in domestic market declined by 20 per cent to Rs.117 crore. Its APIs exports, however, improved by 6 per cent to Rs.416 crore.