India, one of the leading MNC pharma companies in the
country, has reported a decline in second quarter revenues
and profits. Higher interest and other income as well
as better management of costs helped the company to lessen
the impact on bottom line to some extent. The company
follows a Jan-December financial year.
For the quarter ended 30th June 2006, net profits of the
company has declined 11.99 per cent to Rs91.06 crore from
Rs103.46 crore for the previous year quarter. Total sales
revenues declined 12.34 per cent to Rs407.34 crore from
Rs464.98 crore for the year ago quarter.
company had booked one-time expenses of Rs1.92 crore
during the previous year quarter. Adjusted for this
amount, net profits have declined 13.59 per cent during
profits or EBITDA, after excluding other income, has
declined 21.86 per cent over the pervious year quarter.
Operating margins as a percentage of net sales revenues
declined considerably to 28.82 per cent from 32.31 per
cent for the previous year quarter.
consumption declined 18.73 per cent during the quarter.
Staff costs went up 4.99 per cent while other operating
expenses increased 12.66 per cent. Depreciation charges
were marginally higher by 3.45 per cent.
decline in bottom line was arrested to some extent by
a 37.7 per cent rise in net interest income and 34.69
per cent increase in other income.
division of Glaxo reported a decline of 14.06 per cent
in sales revenues while revenues from veterinary products,
feed supplements, fine chemicals, diagnostics, laboratory
equipment and exports increased modestly by 7.82 per
cent over the previous year quarter.
company attributed the decline in sales to a high base
effect for the previous year quarter. Sales during the
first quarter of previous year was affected due to the
uncertainties surrounding the implementation of VAT
but the second quarter of last year saw a substantial
jump in sales after VAT was accepted by stockists and
revenues for the first half of the current financial
year (January-June 2006) have increased 12.45 per cent
over the same period of last year. Net profits have
gone up by 27.88 per cent over the same period.
company is in the process of selling its animal healthcare
to European company Virbac for a consideration of Rs20.71
crore. The board and shareholders have approved the
proposal and the sale is in the process of being completed.