Novartis India Q1 net up 3% at Rs 14.31 cr

Drug firm Novartis India today reported a 3.17% rise in its standalone net profit to Rs 14.31 crore for the quarter ended June 30, 2014.

The company had posted a net profit of Rs 13.87 crore for the corresponding period of the previous fiscal, Novartis India said in a filing to BSE.

Standalone net sales of the company declined to Rs 202.06 crore for the quarter under consideration from Rs 219.03 crore for the same period a year ago.

"Reduction in selling prices of some key products arising out of the notification of Drug Price Control Order had a significant adverse impact on the revenue and operating profits of the company. Depreciation of the rupee further impacted the profits," Novartis India said.

The expanded scope of drug price control order is likely to further impact the company's revenue and operating profit, it added.

On 22nd April 2014, Novartis AG, Basel, Switzerland entered into agreements with GlaxoSmithKline plc UK for a combination of Novartis OTC with GSK Consumer Healthcare and with Eli Lilly and Company USA for divestment of Novartis Animal Health business to Lilly.

Shares of Novartis India were today trading at Rs 675 per scrip in the afternoon trade on BSE, down 2.27% from its previous close.