The Hindu Business Line : Nicholas Piramal Q3 net down 70 pc

COUGH SYRUP Phensedyl was one of the sore points affecting the profitability of Nicholas Piramal India Ltd (NPIL) in the third quarter (Q3) ended December 31, 2005.

NPIL's net profit for the third quarter at Rs 23.7 crore was down 69.9 per cent from Rs 78.9 crore for the corresponding period last year. The total income was Rs 357.3 crore (Rs 329.3 crore).

Lower sales of Phensedyl and the absence of sales from two Valdecoxib brands — Vah/Valto (arthritis drugs that had contributed to NPIL's bottomline in the corresponding period last year) — had affected profitability in this quarter, a company official said.

NPIL lost sales of about Rs 25 crore on Phensedyl in the previous quarter. Although the brand was recovering lost ground, NPIL still lost about Rs 10 crore in this quarter, he said.

Profits this quarter also reflected the absence of the two Valdecoxib brands, the official observed. The estimated Rs 5-crore brands had been taken off the shelf, triggered by the global recall of painkiller Vioxx by Merck.

NPIL also booked a marked-to-market foreign exchange loss of Rs 2 crore during the quarter. As a result, the operating profit margin was lower at 12.4 per cent (17.1 per cent), a company note said.

Exports continued to grow, with the quarter witnessing a 66.2 per cent growth at Rs 65 crore. Exports now account for 18.4 per cent of the company's sales.

Revenues from its first custom manufacturing contract with Advanced Medical Optics, Inc. increased to Rs 8 crore. NPIL also announced three new custom manufacturing contracts with AstraZeneca and Pfizer International LLC in the last three months.

During this period, NPIL made its first global acquisition in the custom manufacturing business when it acquired the UK-based Avecia Pharmaceuticals for £9.5 million.

NPIL shares closed 1.99 per cent down at Rs 265.65 on the Bombay Stock Exchange.