Indoco Remedies, a Rs.550 crore plus Mumbai based pharma major, has posted lower net profit of Rs.10.35 crore during the first quarter ended June 2012 as against Rs.11.74 crore in the corresponding period of last year mainly due to significant higher interest cost. Its net profit declined by 11.8 per cent. Interest burden went up sharply to Rs.8.21 crore from Rs.1.29 crore. With lower net profit its earnings per share also moved down to Rs.1.12 from Rs.1.27 in the last period.
Indoco's net sales went up by 20.2 per cent to Rs.151.16 crore from Rs.125.74 crore as its domestic sales increased by 19 per cent to Rs.97.44 crore from Rs.81.91 crore. Domestic formulation sales increased by 20.2 per cent to Rs.93.95 crore, but its domestic APIs sales declined by 7 per cent to Rs.3.49 crore. Therapies which performed well in this quarter are stomatologicals, gastro intestinal, anti infective, respiratory and life style.
Its total exports increased by 20.2 per cent to Rs.150.97 crore from Rs.125.55 crore on account of higher exports to regulated market which increased by 35.1 per cent to Rs.44.53 crore from Rs.32.97 crore in the same quarter of last year. Its exports of formulations to emerging markets, however, declined by 31.5 per cent to Rs.5.42 crore from Rs.7.91 crore. APIs exports also increased by 30.1 per cent to Rs.3.58 crore from Rs.2.76 crore.
EU markets has shown good growth in the current quarter which has been driven by contract manufacturing and dossier out-licensing. Two dossier deals and two new co-development projects were signed which will generate good business once the regulatory approvals are obtained. The company is also participating for EU tenders through parties with number of products which will further help in improving the sales of the company in the coming quarter. In US it has filed a ANDA for a sterile product with US FDA under OTC segment. Supplies to a customer for another ophthalmic product will further improve as the marketing partner in US expects to capture a larger market share. A couple of products under the deal with Watson will be launched in US market in the coming months. It is also exploring the possibilities of a new deal for ophthalmic range and solid dosages in Australia.
Indoco's R&D expenditure increased by 19 per cent to Rs.3.65 crore from Rs.2.29 crore in the similar quarter of last year. Patalganga plant and Rabale plant are scheduled to be inspected by US FDA in the coming months. Along with manufacturing facilities, analytical lab at its R&D Centre at Rabale will also be inspected by the US FDA.
The company launched a new division viz. Indoco CND (Care in Cardiology and Diabetology) in the month of March 2012 catering to the super specialty segments with 245 trained field force. During the first quarter of FY'13, this division has shown positive trends with revenues of over Rs.3 crore. The company launched 10 new products during the quarter under review. It has bought land adjacent to the existing API plant at Patalganga for building a new API plant to meet future capacity requirements.