Total operating income decreased by 17% to Rs 126 crore in Q2FY18, as compared to Rs 152 crore in the corresponding period of the previous year. EBITDA (earnings before interest, taxes, depreciation and amortization) margin fallen to 11.6% in Q2FY18 as against 16.6% in Q2FY17.
“The performance of this quarter was impacted due to lower than expected sales in Ciprofloxacin, Salmeterol and a product in the CMS segment. Also, the company continues to face capacity constraints in Unit- 1 that prevented it from delivering more orders this quarter,” said Sucheth Davuluri, Vice-Chairman and CEO, Neuland Laboratories.
The Board has given an in-principle approval to acquire a registered facility and we believe that this process when consummated will address capacity constraints as well as our growth aspirations, added Sucheth Davuluri.
At 10:23 AM; the stock was down 7% at Rs 1,188 on the BSE, against a marginal 0.02% rise in the S&P BSE Sensex. A combined 27,159 shares changed hands on the counter on the NSE and BSE.
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