For the nine months period ended December 2017, Neuland's net profit declined by 73.9 per cent to Rs.6.10 crore from Rs.23.37 crore in the similar period of last year. Its net sales declined by 18 per cent to Rs.359.27 crore from Rs.438.05 crore.
Commenting on the performance Sucheth Davuluri, vice-chairman and CEO sales, “The performance of this quarter continued to be under pressure with lower revenues in some of our GDS products as well as the CMS business. With the volume related issues getting resolved gradually at customer end as well as at our end, we should see recovery in our volumes going forward.”
He also added, “The mood within the company is buoyant with the addition of the new Unit 3 facility in tough and challenging times, a reflection of the future growth prospects. While the Unit 3 will take some time to ramp up in terms of products and revenues, we believe the run way is set for this facility to start delivering in the next fiscal.”
Saharsh Davuluri, joint managing director, said, “Although our 9 months performance is muted, we are seeing a good traction from Q4 onwards for our key products including ciprofloxacin. The company is focusing on operational efficiencies and improvement in production as well as product processes to sustain margins. Our research pipeline will help us deliver growth over medium term.”