Piramal Healthcare net down 5%

Ajay Piramal-promoted Piramal Healthcare has posted a consolidated net profit of Rs 80.7 crore for the June quarter, 5.1 per cent less than Rs 85.1 crore in the corresponding period last year.

Net sales advanced by 2.5 per cent to Rs 842.4 crore from Rs 821.5 crore.

In May, the company had entered into a definitive agreement to sell its healthcare solutions (domestic formulation) business to Abbott, a US-based multinational drug company, for over Rs 17,000 crore. This business grew 4.9 per cent during the quarter, way below the industry growth of over 19 per cent during the period.

“The performance of the healthcare solutions business for the quarter was impacted due to uncertainty related to the sale of healthcare solutions business and the transition cost associated with the deal. The performance is now improving and will soon return to its earlier growth trajectory,” said Ajay Piramal, chairman, in a statement.

He said Piramal Healthcare expected to see better performance in the remaining businesses and also in the second half of the financial year due to commencement of revenues from new contracts from Indian facilities in the pharma solutions business and continued momentum in the critical care business.

Its pharma solutions (custom manufacturing) business reported a revenue of Rs 170 crore, compared to Rs 210 crore in the similar quarter last year. Revenue from Indian facilities also declined to Rs 66 crore from Rs 81 crore. Revenue from critical care business increased by 48.5 per cent to Rs 110 crore from Rs 73 crore.

In July 2010, the company had entered into a definitive agreement with Super Religare Laboratories to sell Piramal Diagnostic for Rs 600 crore.