USFDA warning hits Aurobindo, posts Rs80-cr loss in Q2
HYDERABAD: Aurobindo Pharma has posted a consolidated net loss of Rs 80.16 crore for the second quarter ended September 30, 2011, mainly due to USFDA alert on one of its manufacturing units in Hyderabad and subdued demand in Europe.
The company had posted a net profit of Rs 198.32 crore for the same period previous fiscal, Aurobindo Pharma said in a statement.
Net sales of the company declined by 3.35 per cent to Rs 1,075.30 crore for the second quarter, as against Rs 1,112.62 crore in the same period last fiscal.
Aurobindo Pharma Chairman Ramprasad Reddy said: “The first half of the current fiscal has been challenging on account of lower formulation sales, full impact of the USFDA alert on our Unit VI Cephalosporin manufacturing facility..”
The company had received a warning letter from US Food and Drug Administration (USFDA) in May this year, following an import alert in February for its cephalosporin-producing Unit VI located at Chitkul Village, in Hyderabad, Andhra Pradesh. Consequently, the company’s drugs produced at the unit were banned in the US market.
Subdued demand environment in Europe, disruption in operations due to regional unrest and notional loss on restatement of foreign currency borrowings also added to the challenge, he added.
“We are confident to deliver on better operational performance in the coming quarters with profitable sales mix,” he added.
For the six months ended September 30, 2011, the company posted a net loss of Rs 202.95 crore. The company had a net profit of Rs 249.82 crore for the same period previous fiscal.
On a standalone basis, the company posted a net loss of Rs 41.88 crore for the second quarter ended September 30, 2011. It had a net profit of Rs 214.03 crore in the same period last fiscal.
Category: Business
About the Author (Author Profile)
Subscribe
If you enjoyed this article, subscribe to receive more just like it.
Loading ...
Exchange Rate
