Indoco Remedies, a Rs.1,000 crore plus Mumbai based pharma major has suffered setback during the first quarter ended June 2017 and it incurred a net loss of Rs.21.73 crore as against a net profit of Rs.19.79 crore mainly due to warning letter from US FDA and GST implementation. Its net sale also declined sharply by 19.1 per cent to Rs.204.22 crore from Rs.252.50 crore. With net loss, EPS worked out to negative Rs.2.36 as compared to Rs.1.95 in the last period.

Its domestic sales declined by 27.6 per cent to Rs.110 crore from Rs.152 crore and its international sales declined to Rs.94 crore from Rs.100 crore.

After the announcement of financial results, Indoco scrip declined by Rs.7.30 to Rs.191.35 on BSE. The scrip touched to its yearly peak level at Rs.360.35 in September 2016 and lowest at Rs.179 during May 2017.

Aditii Panandikar, managing director, said, “On the domestic front, secondary sales figures reported by AIOCD AWACS have shown usual off-take and growth, which gives the company confidence, that the loss of sales in first quarter is expected to be recovered in coming period. The company has taken immediate steps to cut costs and improve efficiencies, which will enable it to get back on track.”

Indoco introduced 3 new products in the Indian market, one in the gynaec segment and two in the cardiac segment. The company has 9 manufacturing facilities, 6 of which are for FDFs and 3 APIs, supported by R&D Centre and CRO facility. It has ti-ups with large generic companies like Watson (Actavis), USA and ASPEN, South Africa.

Post receipt of warning letter, the company has initiated remedial action in co-ordination with US based consultant, and will commence shipment to US, product by product, beginning from September 2017. The corrective measures being implemented will further strengthen Indoco's quality management system, with benefits to all manufacturing facilities.