Strides Arcolab posts 93% decline in net profit

Drug firm Strides Arcolab on Thursday reported a 92.65 per cent fall in net profit at Rs 2.21 crore for the quarter ended September 30, mainly due to delay in product approvals in the US market and foreign exchange loss.

The company had posted a net profit of Rs 30.11 crore during the same period of previous year.

Net sales of the company rose to Rs 199.18 crore for the third quarter, compared to Rs 179.70 crore during the same period of previous year, Strides Arcolab said in a statement.

The Bangalore-based firm, however, reaffirmed its revenue guidance for the year at Rs 1,000 crore.

"In spite of a subdued quarter and delay in product approvals for the US market, the company is confident of meeting its guidance for the year," said Strides Arcolab vice-chairman and group CEO Arun Kumar.

The company's forex loss during the third quarter stood at Rs 12.5 crore. It follows January-December financial year.

The company, which had received a warning letter from US Food and Drug Adminstration (USFDA) for its injectable facility in Bangalore, has taken various voluntary remedial actions to address the concerns raised by the health regulator and has responded suitably within the stipulated timeliness, it said.

The transaction with Mylan announced in February 2013 is expected to close in the fourth quarter of FY13, it added.

In February this year, Mylan had announced that it would acquire the entire issues and outstanding share capital of Agila Specialities Pvt Ltd - a subsidiary of Strides Arcolab in a deal worth Rs 5,168 crore.

Shares of Strides Arcolab closed at Rs 924.25 apiece on the BSE, up 1.32 per cent from the previous close.