CRAMS player Dishman posts 95% jump in net profit in Q3

Its net sales during the quarter declined from Rs 385 cr to Rs 382 cr, down 0.8%

Contract research and manufacturing services (CRAMS) player Dishman Pharmaceuticals and Chemicals Ltd posted a 95.3 per cent rise in its net profit after taxes, minority interest and share of profit of associates to Rs 46.93 crore in the quarter ended December 31, 2015 primarily on the back of improved operating profit margins.

Its net sales during the quarter declined from Rs 385.84 crore to Rs 382.47 crore, down 0.8 per cent.

Sarabjit Kour Nangra, vice president, research, Pharma, Angel Broking said that Dishman posted results better than expected on net profit level.

"For Q3FY16, the company posted sales of Rs 382.5 crore versus Rs 450 crore expected. Its key segment CRAMS posted sales of Rs 293 crore, a growth of 0.4 per cent year-on-year (YoY), while other segment posted sales of Rs 89.7 crore, de-growth of 4.9 per cent," she said.

On operating front, the gross margins came in at 77.9 per cent versus 67 per cent in Q3FY15, leading the OPM to come in 27.2 per cent versus 18.4 per cent expected and 18.2 per cent in Q3FY15. "Thus, the adjusted net profit came in at Rs 46.9 crore versus Rs 31.6 crore expected and versus Rs 24 crore in Q3FY15, YoY growth of 95.3 per cent," Nangra explained.