Cadila Healthcare Q3 net profit dips on higher tax payment

While standalone net profit dips 295%, consolidated dips by 31%

Ahmedabad-based pharma major Cadila Healthcare's standalone net profit for the third quarter of the fiscal has fallen from Rs 134.2 crore in the corresponding quarter last year to Rs 33.9 crore this year, a huge dip of 295%. Total income from operations has decreased by 9% to Rs 799.2 crore during the quarter from Rs 878.9 crore in the same period last fiscal.

In comparison, the consolidated net profit for the third quarter ending December 31, stood at Rs 102.9 crore, down 31% from Rs 149.2 crore in the corresponding quarter last financial year. The income from operations, however, increased by around 15% to Rs 1621.1 crore from Rs 1401.4 crore in the corresponding period last fiscal.

Pankaj Patel, chairman and managing director, Cadila Healthcare (Zydus Cadila), reasoned, "We are a big company, and the standalone results are perhaps not the right way to look at the performance. Also, for the consolidated results, the numbers look a little low as there was a one-time cost during the quarter as well as higher tax payment."

Commenting on the company's performance, Sarabjit Kour Nangra vice president, research (Pharmaceuticals), of Angel Broking said, "Cadila came out with results below expectations. While the sales growth at 15.4% came in in-line with expectations, the bottom-line growth was below expectation, as the operating profit margins contracted by 349bps to end the quarter at 13.6%, which lead the net profits to dip by 31.1% during the period. The margins were subdued on back of  higher rise in the R&D and other expenditure and contraction in gross margin."