Neuland Laboratories Q1 FY 2014 revenues decrease 4% to $20.27 million

Neuland Laboratories Ltd.Aug 2 2013

Neuland Laboratories Ltd., (NSE:NEULANDLAB; BOM:524558) a pharmaceutical manufacturer providing active pharmaceutical ingredients (APIs), complex intermediates and contract manufacturing services to customers located in 85 countries, today announced financial results for the first quarter of fiscal year (FY) 2014, ended June 30, 2013.

"Neuland reported continued progress on our campaign to reduce costs and increase profitability in the first quarter," said Dr. D.R. Rao, Chairman and Managing Director of Neuland Labs. "Our focus on better managing our costs of production and overall expenses resulted in profits that were treble those reported in the comparable quarter of last year, despite the challenges posed by the continued weakness in the Indian rupee."

Revenues for the first quarter of FY 2014 were $20.27 million (1.21 billion INR) compared to revenues in the first quarter of FY 2013 of $21.15 million (1.27 billion INR), a decrease of 4%.

Neuland reported EBITDA of $3.44 million (206.0 million INR) in the first quarter of FY 2014, compared to EBITDA of $2.60 million (155.71 million INR) in the comparable period in FY 2013, an increase of 32%.

After-tax profits in the first quarter of FY 2014 were $1.31 million (78.11 million INR), compared to after-tax profits of $0.51 million (30.8 million INR) in the first quarter of FY 2013, an increase of 157%.

"Neuland is also making progress on our strategic objective of strengthening our product mix," noted Sucheth R. Davuluri, Chief Executive Officer of Neuland Labs. "We increased product sales more than 10% from the last quarter, and importantly, this growth was concentrated in our higher margin businesses, such as contract manufacturing and new generic APIs, in line with our move to enhance the value of our product mix. Neuland's decades-long record of R&D innovation, quality and regulatory excellence make us well-positioned to continue to increase market share in these high growth, higher margin sectors."