Exchange losses push down net profit of 100 cos by 40% in 2008-09

The net profit of 100 listed pharmaceutical companies in the country declined sharply by 40.3 per cent to Rs 6,075 crore in 2008-09 from Rs 10,173 crore reported in the previous year. This is primarily because of the huge foreign exchange losses incurred by most of these companies during the year. Net profit before foreign exchange losses and other adjustments, on the other hand, went up by 25.7 per cent to Rs 11,513 crore in from Rs 9,156 crore in the previous year.

Considering global slowdown, increasingly tough approval norms, stiff generic competition, volatile foreign exchange rates and steep rise in interest burden, performance of Indian pharma sector at operational level is satisfactory in 2008-09. S Ramesh, president - finance & planning, Lupin Ltd, said, "The pharmaceutical industry is witnessing a change to a new world order, with India at the forefront of the generics story. New avenues such as contract manufacturing & in-licensing deals have added to the revenue growth of many Indian companies."