Indian pharmaceutical sector is all set to come out with excellent results in the current financial year if the performance of the pharma companies in the three quarters of this fiscal is any indication. This is in sharp contrast to the last year's disappointing operations in terms of sales and net profits. The performance of the pharmaceutical sector in terms of growth in sales and profits has been in double digit in the current year so far. A Pharmabiz study of financial results of 50 large companies during the last three quarters of the current year indicate that their net sales had gone up by over 23 per cent and profits by 38 per cent over the same period of the previous year. The net profit as percentage of net sales also improved to 14.4 per cent in the nine months of the current year as against 12.8 per cent in the previous year. A general increase in other incomes during the current year is partly responsible for the substantial growth in profits of some companies. Although the study did not include some top MNCs and Indian companies like GSK, Pfizer, Merck, Ranbaxy and Wockhardt on account of their year closing in November-December period, the performance of 50 companies is quite representative of things to come. Among the companies studied, performance of half a dozen medium scale companies has been quite impressive as compared to large Indian companies like Cipla, Dr Reddy's and Sun. Thus, the sales of Venus Remedies and Polar Pharma recorded a growth of 163 per cent and 129 per cent in the nine months of the current year. A few other medium scale companies which recorded a 50 per cent growth in sales during the period are Panacea Biotec, Surya Pharma, Suven Life Sciences and Vivimed Labs. Against this, industry leaders like Cipla and Dr Reddy's reported only 25 per cent growth in sales while Sun Pharma registered almost 37 per cent sales growth. In terms of net profits, Orchid Chemicals stands out as top with a 340 per cent growth during the current year so far. Its NP soared to Rs 65.52 crore in nine months of this year from Rs 14.41 crore reported in the same period of previous year. Venus Remedies and Dr Reddy's are the other two outstanding performers in terms of profit growth during nine months period. With Dr Reddy's reporting a profit growth of 203 per cent so far, this year is going to be a turnaround year for the company. The net profit of a few major companies like Nicholas Piramal, Biocon and Ipca, Glenmark and Wyeth, however, declined during the current year. But, judging from the overall performance of the pharma sector in the current year so far one can say it is heading for good times despite odds like new patent law, increasing regulatory restrictions and tough competition in the world markets. And the profits are mostly generated from overseas operations and not from domestic sales. This is indeed remarkable especially when the government has not been doing anything worthwhile to give a boost to this sector.