IPCA LABS LIMITED - QTRLY RESULTS - FOR Q1 FY 2014-15 (JUNE 14) -INCOME UP 16% YoY; NET PROFIT UP 103%

IPCA LABS LIMITED

QTRLY RESULTS FOR

Q1 FY 2014-15 (June 2014)

IPCA LABS has produced decent results in Q1 FY 15.

Net Total Income is up by 16% YoY at Rs.942.25 Cr.

Export income is up 14% at Rs.570.87 Cr.

EBITDA is up 35% at 230.92 Cr

Profit Before FOREX Gain/Loss and TAX is 193.58 Cr, up 34% YoY.

Forex  Gain  in Q1 FY 15 is Rs.2.26 cr; against Forex loss of Rs.47.96 cr in Q1 FY 14.

Net Profit is Rs.145.49 Cr in Q1 FY 15 against Rs.77.77 Cr in Q1 FY 14 , a growth of 103%, aided hugely by the FOREX gain in Q1 FY 15 against Huge Forex loss in Q1 FY 14. If this Forex gain is excluded, the percentage growth in Profit is 34%, which is also decent growth.

EPS on Rs.2 Face value has shown similar growth of 103 % at Rs.11.53 against Rs.5.69 in Q1 FY 14.

IPCA says, exports now account for 61% of company’s Income.

IPCA is progressing very fast in respect of Sales and Profits.

A press release dt July,24,2014 from the company says that –

“During the recent US FDA inspection at the Company's Active Pharmaceutical Ingredients (APls) manufacturing facility situated at Ratlam (Madhya Pradesh) the Company has received certain inspection observations in Form 483 from the US FDA.

Consequent to this, the Company has voluntarily decided to temporarily suspend API shipments from this manufacturing facility for the US markets till this issue is addressed.....”

The short term impact of this is to be seen in next Quarter. However, long term impact may not be there, if company quickly addresses the US FDA observations and complies with them.

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