Alembic Ltd, Rs 700-crore plus Vadodara based pharma company, received minor setback during the first quarter ended June 2007 on account of higher interest burden. The net profit declined by 6.6 per cent to Rs 17.04 crore from Rs 18.25 crore in the corresponding period of last year. The company's net sales went up by 17.5 per cent to Rs 172.73 crore from Rs 146.99 crore.

The company's profit before interest, depreciation and taxation moved up smartly by 50.3 per cent to Rs 32.42 crore from Rs 21.57 crore. However, the interest burden of Rs 7.55 crore during the quarter under review as compared to Rs 0.68 crore in the previous period put pressure on bottom line.

The domestic sales increased to Rs 139.02 crore from Rs 113.10 crore, a growth of 22.9 per cent. However, its exports declined slightly to Rs 38.93 crore from Rs 39.02 crore in the similar period of last year.

The domestic formulation business grew by 16 per cent to Rs 112.35 crore from Rs 97.02 crore largely on account of acquired business from Dabur Pharma. Brands like Ulgel grew by 39 per cent, Azithral achieved growth of 33 per cent. Hermin became number 2 brand with market share of 18 per cent. During the quarter company launched new division called 'MAXIS' with primary objective to enhance rural coverage.

Alembic's sales in regulated market grew by 29 per cent and stood at Rs 12.82 crore against Rs 9.95 crore. The company has signed a MoU with Inorbit Malls (India) Pvt Ltd (a K Raheja Group company) or sale of land subject to the clearance of title by purchaser's solicitors.

For the financial year ending March 2007, the company clocked revenues of Rs 722 crore, with a net profit of Rs 71 crore.