Novartis India hits 52-week low on poor Q1 results

Novartis India lost 4.5% to Rs 450 at 09:45 IST on BSE after net profit declined 48.6% to Rs 13.87 crore on 1.7% rise in net sales to Rs 219.03 crore in Q1 June 2013 over Q1 June 2012.

The company announced Q1 result after market hours on Wednesday, 24 July 2013.

Meanwhile, the BSE Sensex was down 9.60 points, or 0.05%, to 20,081.08.

On BSE, 6,235 shares were traded in the counter as against an average daily volume of 19,890 shares in the past one quarter.

The stock hit 52-week low of Rs 448 in intraday trade today, 25 July 2013. The stock hit a high of Rs 460 so far during the day. The stock had hit a 52-week high of Rs 740.40 on 11 September 2012.

The stock had underperformed the market over the past one month till 24 July 2013, rising 0.12% compared with the Sensex's 8.36% gain. The scrip had also underperformed the market in past one quarter, sliding 19.45% as against Sensex's rise of 4.75%.

The small-cap company has an equity capital of Rs 15.98 crore. Face value per share is Rs 5.

Novartis India said that core business, pharmaceuticals recorded total income from operations of Rs 162.8 crore in Q1 June 2013 from Rs 162 crore in Q1 June 2012. The generics business registered total income from operations of Rs 15 crore in Q1 June 2013 from Rs 15.7 crore in Q1 June 2012. The animal health business registered total income from operations of Rs 25.6 crore in Q1 June 2013 from Rs 21.9 crore in Q1 June 2012. The OTC business recorded total income from operations of Rs 19.9 crore in Q1 June 2013 from Rs 19.9 crore in Q1 June 2012.

Novartis India said financial results for Q1 June 2013 were adversely impacted by significant rupee depreciation and slowdown in sales due to reduction in trade stocks after notification of the new drug price control order in May 2013. The expanded scope of drug price control is likely to have a significant impact on both revenue and profitability of the company. Necessary steps are being taken to reduce the adverse impact, the company said.

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