Orchid Chem net down 38% to Rs 4.7 cr

BS 200 SCORECARD

Orchid Chemicals & Pharmaceuticals' net profit fell by over 38 per cent to Rs 4.69 crore in the first quarter of the current year, compared with Rs 7.57 crore in the corresponding quarter last year.

Turnover and operating income inched up to Rs 173.86 crore (Rs 172.92 crore). Gross profit climbed by over 12 per cent to Rs 37.24 crore (Rs 33.09 crore). But the hit taken by the margins was evident in the profit before tax, which slipped by nearly 38 per cent to Rs 5.09 crore (Rs 8.20 crore).

The company release explained that the increased scale of operations and the investments required for the regulated markets have resulted in a higher quantum of borrowings and interest charges, which rose to Rs 16.86 crore (Rs 11.09 crore).

This has resulted in a lower net profit in this quarter, despite the higher EBITDA level. This, despite higher outgo on depreciation at Rs 15.29 crore (Rs 13.80 crore).

Raghavendra Rao, managing director, Orchid, said there has been a recent softening in prices of a few mature cephalosporin API products sold in large quantities in certain less-regulated markets.