The Hindu Business Line : Strong rupee, staff costs drag Unichem net

Mumbai, Oct 18 A strong rupee and increasing staff costs have resulted in drug maker Unichem Laboratories seeing a 21 per cent dip in net profit for the three months ended September 30, 2007.

The company clocked a net profit after tax of Rs 21.3 crore, down from Rs 25.7 crore registered in the corresponding quarter of the previous year.

The appreciating rupee impacted exports, that stood at Rs 30 crore, a company official said. Unichem exports to Europe, Russian and CIS markets. The company was re-negotiating deals in the context of fluctuating market prices, he said.

Also, about 300 employees were taken on board during the quarter, increasing staff cost by about 25 per cent, he said. About 200 people were to support the company’s marketing activity, while the rest would support research he said.

The company’s research spend accounts for about 5 per cent of sales, he said.

Unichem’s income from operations stood at Rs 153.1 crore compared with Rs 149.2 crore in the same quarter of the previous year. Unichem’s subsidiary in the UK, Niche Generics Ltd achieved sales of £2.9 million during the second quarter of the current fiscal, unchanged from the previous year period, a note from Unichem said.

Unichem shares on the BSE closed at Rs 208, down 1.59 per cent.

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