Mumbai: Drugmaker Cadila Healthcare’s first-quarter net profit rose 15% , primarily on strong overseas performance, beating street estimates.
The Ahmedabad-based firm on Tuesday reported a consolidated net profit of Rs 229 crore in April-June on total income of Rs 1,252 crore.
A Reuters’ poll of 17 brokerages had forecast consolidated net profit of Rs 203 crore for June quarter.
While Cadila’s stand-alone quarterly net sales rose a mere 2.34% to Rs 567 crore on year, its consolidated sales grew 11.2% on year to Rs 1,174 crore, it said.
“Cadila’s overseas business has always been crucial for the company and it has made up for a sluggish domestic performance in the quarter,” an analyst with a Mumbai-based brokerage said.
In April-June, the firm’s formulations business grew 22% in Europe while Brazil and Japan saw sales jumping 21% and 29% respectively in the same segment, the company said in a statement.
During the quarter, the drugmaker, through its US unit, acquired generics business of K-V Pharmaceutical Co for $60 million in cash.
The company’s equal joint venture with a unit of Bayer AG commenced commercial operations in India during the June quarter, it said.
Shares of Cadila Healthcare, which have gained 16.24% in value during April-June as compared to BSE healthcare index that rose 6.21%, closed at Rs 952.90 on Tuesday, down 0.61% in a firm Mumbai market.