Aster DM Healthcare rose 2.70% to Rs 95 after the company announced the closure of its loss making pharmacies in Kuwait.
In an exchange filing made after market hours yesterday, the company said that it has been operating pharmacies in Kuwait though its subsidiary, Aster Kuwait Pharmaceuticals and Medical Equipment Company W.L.L (the subsidiary). As on 31 March 2020, the company's subsidiary contributes Rs 33.26 crore or 0.42% towards Aster DM Healthcare's consolidated revenues. The business had a negative net-worth of Rs 26.58 crore.
The company said that it intends to exit from the Kuwait market by shutting down the loss making operations of the pharmacies. The drug maker expects to close all Kuwait operations by 31 May 2020.
The company has received KD 468,000 for pharmacies sold and a consideration for last unit is expected to be around KD 15000.
The company has sold its Kuwait-based pharmacies to Pharmazone and to Palestine Pharmacy Company (PALCO). Pharmazone is a leading pharmacy chain in Kuwait while PALCO a leading distributor of medicines in Kuwait. The aforementioned companies have acquired Aster DM's pharmacies to expand their retail footprint, the company said in a statement. It added that details of the vendor to whom the last pharmacy shall be sold is yet to be finalised.
Aster DM Healthcare operates in various segments of the healthcare industry, which include hospitals, clinics and retail pharmacies, and provides healthcare services to patients across economic segments in various gulf corporation council (GCC) states through its various brands, such as Aster, Medcare and Access.
On a consolidated basis, the company's net profit rose 38.6% to Rs 139.12 crore on an 8% increase in net sales to Rs 2321.66 crore in Q3 December 2019 over Q3 December 2018.
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