IPCA Laboratories, a Rs 1500 crore plus Mumbai based pharma major, has suffered a setback during the first quarter ended June 2010 mainly due to decline in anti-malarial formulations & API sales, higher employees and marketing costs. Its net profit declined by 22 per cent to Rs 38.84 crore from Rs 49.77 crore in the corresponding period of last year. Its net sales increased by 15.9 per cent to Rs 414.50 crore from Rs 357.77 crore. With fall in profits, its earning per share declined to Rs 3.10 from Rs 3.99 crore in the last period.

Total revenue for formulations business improved by 21 per cent to Rs 290.23 crore from Rs 239.53 crore in the similar period of last year. Its revenues from domestic branded formulations increased by 16 per cent to Rs 168.20 crore from Rs 144.90 crore. IPCA's revenues from APIs improved only by 5 per cent to Rs 124.26 crore from Rs 118.24 crore. The sales impacted due to decline in anti-malarial API sales in the domestic and export markets.

The export sales of formulations increased by 29 per cent to Rs 122.03 crore and exports of APIs increased by 10 per cent to Rs 88.29 crore.