The Hindu Business Line : Nicholas Piramal Q1 net slides 32%

Mumbai, July 25 Nicholas Piramal India Ltd (NIPL) saw a 32.6 per cent dip in net profit for the first quarter ended June 30, 2007. The company has posted a profit after tax of Rs 34.39 crore for the quarter under compared with Rs 51 crore in the corresponding period of the previous year.

Expressing disappointment with the domestic performance, the NPIL Chairman, Mr Ajay Piramal, said that one of the reasons was the shortage of codeine, used in its cough syrup Phensedyl. Codeine is a raw material controlled by the Centre and the Government was taking steps to improve availability of this raw material, he said

Total income

The company clocked total income (net of excise) of Rs 397.09 crore for the quarter ended June 30, 2007, against Rs 401.89 crore for the quarter ended June 30, 2006.

The group’s consolidated profit after prior period items saw a 19 per cent fall, at Rs 43.43 crore (Rs 53.86 crore). Total income (net of excise) stood at Rs 610.09 crore(Rs 522.58 crore).

On the domestic market front, NPIL’s branded formulations sales grew by 0.5 per cent during the quarter.

New products

Mr Piramal said the next quarter would see the launch of new products in the domestic segment. Alliances struck by NPIL for contract manufacturing would bring in the revenues in the third and fourth quarters, he said. On the repeated issues around Phensedyl, he said the company had taken steps to curb any misuse, especially in the north-eastern region of the country.

Cap on dealers

Dealers will be not allowed to sell more than 10,000 bottles and payment has to be madeon cash and not on credit, he said.

Also, authorities in the region were being kept in the loop on the sales, he said.

The board approved a proposal for the merger of its wholly-owned subsidiary, Nicholas Piramal Consumer Products Pvt Ltd (formerly known as Boots Piramal Healthcare Pvt Ltd) with NPIL.

In October last year, NPIL had bought the Boots’ share of 51 per cent in the Boots Piramal joint venture.

NPIL shares dipped 5.62 per cent on the Bombay Stock Exchange, at Rs 267.20