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Novartis India hits 52-week low as June quarter profit halves

The company said, the expanded scope of drug price control is likely to have a significant impact on both revenue and profitability.

SI Reporter  |  Mumbai 

Novartis India has dipped 5% to Rs 450 after reporting 49% year-on-year (yoy) decline in net profit at Rs 139 crore for the quarter June 30, 2013 due to rupee depreciation and lower sales volume. The pharmaceutical company had profit of Rs 270 crore in year ago quarter.

Total income from operations grew marginally by 1.6% at Rs 2,231 crore over the corresponding quarter of the previous year.

“Financial results for the quarter 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,” Novartis India said in press release.

The company said that the expanded scope of drug price control is likely to have a significant impact on both revenue and profitability of the company.

The stock opened at Rs 460 and touched a 52-week low of Rs 448 on BSE. Around 8,584 shares have changed hands so far against an average around 11,000 shares that were traded daily in past two weeks on BSE.

First Published: Thu, July 25 2013. 10:36 IST
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