Claris Lifescience has received major setback during the third quarter ended December 2015 and it incurred a standalone net loss of Rs.68.87 crore as against a net profit of Rs.89.85 crore in the corresponding period of last year. The company's net sales improved by 7.2 per cent to Rs.192.07 crore from Rs.179.15 crore. Its other income declined by 62 per cent to Rs.10.20 crore from Rs.26.78 crore which put pressure on profitability. EBIDTA declined by 37.2 per cent to Rs.46.08 crore from Rs.73.35 crore. Further, as against the tax provision of Rs.8.93 crore during the quarter under review, it has shown tax income of Rs.37.27 crore in the similar period of last year. EPS worked out to negative Rs.12.62 as compared to Rs.15.82 in the last period.

.The company has shown share in loss from associate company i.e. Claris Otsuka Pvt Ltd amounting to Rs.84.77 crore on account of impairment of intangible assets and business operations during quarter ended December 2015. This impacted its profitability significantly.

The company transferred its injectables business on slump sale basis to its wholly owned subsidiary namely Claris Injectables Ltd (formerly known as Claris Lifesciences International Ltd) in October 2014 for a consideration of Rs.554 crore and it registered a profit of Rs.523.03 crore on account of slump sale of injectables business.

For the nine months ended December 2015, Claris' net sales improved by 16.2 per cent to Rs.572.11 crore from Rs.492.29 crore in the same period of last year. However, it incurred a heavy net loss of Rs.61.61 crore as compared to loss of Rs.3.06 crore. The company has provided Rs.37.83 crore for legal, professional, traveling and consultancy etc., on account of various strategic and management initiatives of which majority of expenses are of prior year/period. The share of loss from associate company amounted to Rs.88.75 crore. Both these provisions put pressure on working and it incurred heavy net loss of Rs.61.61 crore. Further tax provision amounted to Rs.22.07 crore as against tax income of Rs.21.44 crore in the same period of last year.