Dishman Pharma consolidated net dips 21% in Q2

Net sales grew 10.4% to Rs 392 crore compared annually

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Ahmedabad-based contract research and manufacturing services (CRAMS) player Dishman Pharmaceuticals and Chemicals Ltd posted a four-fold rise in net profit on a standalone basis for the quarter ended September 30, 2014 to Rs 25.37 crore on the back of an other income of Rs 24.56 crore during the quarter.

The company’s net sales, however, posted a 9.6 per cent drop on a year-on-year basis during the quarter under review to Rs 109.36 crore.

On a consolidated basis, however, the company posted a 21 per cent drop in net profit to Rs 33.35 crore, while its net sales for the quarter grew 10.4 per cent on a year-on-year basis to Rs 392 crore.

According to Angel Broking, “The sales growth during the period was aided by the CRAMS segment, which posted sales of Rs 281.2 crore, a yoy growth of 19.2 per cent, constituting a 71.7 per cent of sales, while other segment posted a dip of 5 per cent yoy.”

The report also added that “Owing to high other expenses, which grew by 22 per cent yoy, the operating margins (OPM) came in at 20.6 per cent versus 23.4 per cent expected, yoy dip of 634 bps.”