Mumbai: Healthcare equipment maker Opto Circuits (India) reported a 40% jump in quarterly net profit primarily on robust sales in the domestic as well as overseas markets and beat street estimates with a wide margin.
The net profit, however, did not grow in line with a huge 78% jump in sales as the company’s operational expenses zoomed in the quarter.
Opto Circuits’ manufacturing expenses in April-June rose 56.17% to Rs 278 crore while employee cost more than doubled to Rs 445 million, it said.
The company reported over three times rise in administration and marketing expenditure at Rs 573.8 million for quarter ended June, it said.
“The Opto Circuits group (during the quarter) has efficiently integrated the operations and functions of its US businesses, strengthening it further,” said chairman and managing director Vinod Ramnani in a statement.
“Keeping in line with this, we have also restructured our medical equipment and interventional devices business segments to save cost and obtain operational efficiency.”
The Bangalore-based firm on Tuesday reported June quarter consolidated net profit of Rs 116 crore on net sales of Rs 521 crore.
A Reuters’ poll of 17 brokerages had forecast a consolidated net profit of Rs 879.33 million on net sales of Rs 497 crore for Opto Circuits.
Opto Circuits said it clocked sales of Rs 102 crore in the domestic market, while international business contributed Rs 423 crore to the top line, it said.
“Although the expenses have shot up, the company has won excellent orders during the quarter, which has pushed up its profits,” said an analyst with a Mumbai-based brokerage.
“The company has set up a strong sales force, which would help it further drive the sales growth.”
Shares of Opto Circuits, which have gained 8.42% in value during April-June compared with the BSE healthcare index that rose 6.21%, closed at Rs 275.05 on Tuesday, up 0.46% in a weak Mumbai market.