Mumbai: Drugmaker Piramal Healthcare’s consolidated quarterly net profit fell 5%, substantially lagging street estimates, mainly due to sluggish growth from its healthcare solutions business. The firm, which decided to sell its healthcare solutions business to Abbott Labs for $3.72 billion in May, reported a consolidated net profit of Rs80.74 crore on net sales of Rs.842 crore for April-June.
A Reuters’ poll of 14 brokerages had forecast a consolidated net profit of Rs121 crore on net sales of Rs950 crore for Piramal Healthcare.
“The healthcare solutions business for the quarter was impacted due to uncertainty related to the sale of healthcare solutions business and the transition cost associated with the deal,” chairman Ajay Piramal said in a statement.
Piramal’s revenue from healthcare solutions grew 4.9% during the quarter to Rs460 crore, far below the overall industry growth of 19.6%, it said in a statement.
“The performance is now improving and will soon return to its earlier growth trajectory,” he added.
During the quarter, Piramal also decided to sell its unit Piramal Diagnostic Services Pvt Ltd to Super Religare Laboratories for Rs600 crore.
The diagnostic services business grew 10.6% during the quarter to Rs.53.6 crore, it said.
“Second half of the financial year will be much better than the first half due to commencement of revenues from new contracts from the pharma solutions business and continued momentum in the critical care business,” he said in a statement.
The Mumbai-based drugmaker’s revenue from critical care segment rose 48.5% to Rs110 crore in April-June against Rs72.88 crore a year ago.
Shares of Piramal Healthcare, which have fallen 9.27% over the last three months, closed at Rs482.05 on Tuesday, down 2.81%, on the Bombay Stock Exchange.