Neuland Laboratories, a Rs.500 crore plus pharma major from Hyderabad, has suffered a major setback during the fourth quarter ended March 2018 and its standalone net profit declined by 45.2 per cent to Rs.8.05 crore from Rs.14.68 crore in the corresponding period of last year. Its standalone net sales increased by 13.2 per cent to Rs.160.23 crore from Rs.141.55 crore. With sharp fall in net profit, EPS declined to Rs.7.22 from Rs.13.17 in the last period.

Neuland scrip close lower by Rs.5.90 to Rs.790 on BSE. The scrip touched to its yearly highest level at Rs.1,547.50 on July 24, 2017 and lowest at Rs.680 during March 2018.

For the full year ended March 2018, Neuland's consolidated net sales declined by 10 per cent to Rs.529.16 crore from Rs.587.73 crore in the previous year. Its net profit went down by 74.3 per cent to Rs.12.06 crore from Rs.46.86 crore. As against the equity capital of Rs.8.95 crore Its reserves and surplus amounted to Rs.238.23 crore. Its total borrowings increased sharply by 67.3 per cent to Rs.302.68 crore from Rs.180.89 crore.

The company merged its subsidiaries viz., Neuland Health Sciences Pvt Ltd and Neuland Pharma Research Pvt Ltd for a purchase consideration of Rs.310.85 crore by way of allotment of 68.61 lakh equity shares of Rs.10 each on April, 30, 2018 to the shareholders of these subsidiaries, after cancellation of cross holding of 45.91 lakh equity shares and 5 lakh equity respectively. Due to this Neuland's equity capital increased recently by additional 22.70 lakh equity shares.