Neuland Laboratories, a Rs.485 crore plus pharma major from Hyderabad, has suffered a setback during the third quarter ended December 2016 due to delay in shipments. Its net profit declined sharply by 39.3 per cent to Rs.3.81 crore from Rs.6.27 crore in the similar period of last year. The net sales went up by 11.2 per cent to Rs.128.67 crore from Rs.115.75 crore. EPS declined to Rs.4.30 from Rs.7.07 in the last period.
After the announcement of financial results, Neuland scrip declined by over Rs.36 to Rs.900 on BSE. The scrip touched to its yearly high level at Rs.1,105 on December 1, 2016.
Sucheth Davuluri, vice chairman and CEO, said, “The performance this quarter was below our expectations. The revenue was largely affected n account of spillover of few shipments to the next quarter which was beyond our control. We believe this aberration in the performance is transitory and we expect to close the full year as per plan. The business continues to be robust and healthy in the long term.”
Sahrash Davuluri, joint managing director, added, “While the performance got affected due to temporary issues, one significant highlight of the quarter has been the robust pickup in the custom manufacturing business of the group. I contributed a significant 25 per cent of revenues to the company.”
For the nine months ended December 2016, Neuland's net sales increased by 19.5 per cent to Rs.418.69 crore from Rs.350.50 crore in the same period of last year. Its net profit also moved up by 20.9 per cent to Rs.23.91 crore from Rs.19.78 crore. EPS worked out to Rs.26.92 as against Rs.22.27 in the last period
Neuland laboratories, net dip, q3
7.jpg)