Neuland Laboratories has dipped 8% to Rs 1,175 on the BSE in intra-day trade after the company reported 75% decline in its standalone net profit at Rs 2.59 crore in September quarter (Q2FY18), due to lower sales. The pharmaceutical company had profit of Rs 10.23 crore in the same quarter year ago. Total operating income decreased by 17% to Rs 126 crore in Q2FY18, as compared to Rs 152 crore in the corresponding period of the previous year.
EBITDA (earnings before interest, taxes, depreciation and amortization) margin fallen to 11.6% in Q2FY18 as against 16.6% in Q2FY17. “The performance of this quarter was impacted due to lower than expected sales in Ciprofloxacin, Salmeterol and a product in the CMS segment. Also, the company continues to face capacity constraints in Unit- 1 that prevented it from delivering more orders this quarter,” said Sucheth Davuluri, Vice-Chairman and CEO, Neuland Laboratories. The Board has given an in-principle approval to acquire a registered facility and we believe that this process when consummated will address capacity constraints as well as our growth aspirations, added Sucheth Davuluri. At 10:23 AM; the stock was down 7% at Rs 1,188 on the BSE, against a marginal 0.02% rise in the S&P BSE Sensex. A combined 27,159 shares changed hands on the counter on the NSE and BSE.