Unichem Labs in poor health

Unichem Labs is down almost 4% at Rs.188.55, closer to its intra day low of Rs.187. The 52-weeklow stands at Rs.138.

The stock is in the red, post the dismal numbers it posted for Q1FY15. The company, for Q1, posted a 16% (YoY) drop in net profit at Rs.30 crore. This was on the back of lower other income despite net sales rising 10% at Rs.291 crore. This rise in sales was on account of 33% rise in export formulations through the domestic formulations showed a muted growth of just 2.5%.

EBITDA for the quarter rose 4% at Rs.44 crore though margins fell to 15%, down 130 bps. This fall in margins was on account of rise in total expenses, up 15%. This rise in expense was mainly on account of employee cost, which rose 22% and raw material expenses rose 21%. Other income for the quarter was down from Rs.8 crore to Rs.5 crore.