IOL Chemicals board OKs setting up unit in UK

The pharma company said that its board approved formation of a wholly owned subsidiary in United Kingdom (UK).

IOL Chemicals and Pharmaceuticals said, "the Board of Directors in its meeting held on 14th November 2022 has also approved the formation of a wholly owned subsidiary of the Company in United Kingdom (UK) which gives better business growth opportunities and promoting business globally."

On a standalone basis, net profit of IOL Chemicals & Pharmaceuticals declined 49.19% to Rs 15.67 crore on 0.66% increase in net sales to Rs 541.41 crore in Q2 September 2022 over Q2 September 2021. EBITDA fell 32.4% YoY to Rs 36.73 crore in Q2 FY23. EBITDA margin stood at 6.72% in Q2 FY23 as against 10.73% in Q1 FY23 and 9.90% in Q2 FY22.

Sanjay Chaturvedi, executive director & CEO said, "The global economy is going through a roller-coaster ride as central banks battle inflation through rate hikes. Apart from inflation, the global trade is also impacted by uncertain business environment following Russia's invasion of Ukraine and frequent lockdowns in China, thereby leading to supply chain disruptions.

For the Indian API manufacturers and specialty chemicals players, the major challenge comes from volatile input costs with raw material and energy prices both impacting the profitability. However, we expect the headwinds to subside going into the second half of this financial year and strongly believe that the worst is behind us in terms of challenges. IOL Chemicals has improved the operational efficiency over last few quarters and we believe this would give us an edge in terms of expanding our margins next quarter onwards."

IOL Chemicals and Pharmaceuticals (IOLCP) is one of the leading pharmaceutical (APIs) company and is significant player in the specialty chemicals space. It has wide presence across major therapeutic categories like, pain management, anti-convulsants, antidiabetes, anti-cholesterol and anti-platelets.

Shares of IOL Chemicals and Pharmaceuticals rose 0.63% to Rs 343.95 on the BSE.

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