Claris Lifiesciences, a Rs. 650 crore plus pharma giant from Ahmedabad, has suffered setback during the second quarter ended June 2014 and its consolidated net profit declined by 14.7 per cent to Rs. 15.48 crore from Rs. 18.15 crore in the same period of last year. Its consolidated net sales also declined by 25.3 per cent to Rs. 151.06 crore from Rs. 202.20 crore. With fall in profits, its EPS declined to Rs. 2.53 as against Rs. 2.84 in the last period. The results are not strictly comparable due to the transfer of the infusion business in India and emerging markets to the joint venture in August 2013.

For the first half ended June 2014, Claris' consolidated net sales declined by 26.1 per cent to Rs. 284.14 crore from Rs. 384.37 crore in the similar half of last year. Its net profit declined to Rs. 28.82 crore from Rs. 33.64 crore, a degrowth of 14.3 per cent. The company has bought-back 92.50 lakh equity shares of Rs. 10 each at the rate of Rs. 250 per share through “Tender Offer” route. On account of above buy-back, the paid up share capital of the company is reduced by Rs. 9.25 crore and securities premium is reduced by Rs. 222 crore. The speciality injectable business has seen increase of 30 per cent in the first half ended June 2014 due to increase sales in US, UK, Philippines, Brazil and Venezuela.

With lower sales and profits, Claris scrip declined by over 3.5 per cent to Rs. 174.80 today on BSE. The scrip touched to its yearly highest level at Rs. 229 in December 2013 and it went down to Rs. 141 in the June 2014.

The company received the re-approval of its flagship plant from the US FDA and has also received approval for the API plant. The API plant manufactures iron sucrose and HES for captive consumption,  and it is awaiting approval from US FDA.