Alembic Q2 net dips 58%to Rs 119 crore

Vadodara-based Alembic Pharmaceuticals Ltd posted a 58.6 per cent drop in net profit for the quarter ended September 30, 2016, to Rs 119 crore as the corresponding quarter last fiscal included revenues and profits from a Para IV new product launch in the US market that had limited competition.

The company's net sales also dipped by 13.5 per cent to Rs 879 crore for the quarter under review.

Pranav Amin, managing director, Alembic Pharmaceuticals Ltd said, "Our base business in the US market is doing well. We will continue to invest in research and development (R&D) for future growth and have spent Rs 115 crore in the quarter on R&D, which is up from Rs 78 crore."

International formulation business stood at Rs 352 crore for Q2FY17 as against Rs 571 crore during the same period in last year. In comparison, the India branded formulations grew 19 per cent to Rs 338 crore. The India generics business remained stagnant at Rs 25 crore for the quarter under review, same as the corresponding quarter last financial year. For a half year basis, it actually dipped slightly from Rs 54 crore in H1FY16 to Rs 46 crore H1FY17.

The India branded business grew on a half yearly basis from Rs 546 crore in H1FY16 to Rs 616 crore in H1FY17; while international formulations declined from Rs 750 crore in H1FY16 to Rs 660 crore in H1FY17.

The company's shares were trading at Rs 672.35 a share on the BSE, down one per cent at around 3 pm.