Pfizer Indian arm reports profit jump on lower costs, price hikes
Pfizer's revenue from operations rose 0.3% to 6.38 billion rupees.
Bengaluru: Pfizer Ltd, the Indian arm of U.S. pharma giant Pfizer Inc, reported a rise in second-quarter profit on Friday, boosted by price hikes and lower input costs.
Profit before tax and exceptional item rose to 2.26 billion Indian rupees ($27.97 million) in the three months ended Sept. 30, from 1.75 billion rupees in the year-ago period.
The company booked a one-time gain of 1.89 billion rupees on the sale its off-patent and generic medicines business, Upjohn.
Pfizer's revenue from operations rose 0.3% to 6.38 billion rupees.
Its cost of materials consumed fell 2.1% to 944 million rupees, accounting for about 21% of total expenses in the quarter.
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Though the volume of drug sales in India took a hit last quarter, drugmakers benefited from price hikes and product launch-led growth, BOB Capital Markets said in a recent note.
The Indian pharma market grew 8.2% year-over-year in value terms during the July-September quarter, supported by higher revenue from medicines treating chronic illnesses even though volumes were flat, analysts at ICICI Securities said in a note.
Read also: JB Pharma records revenue growth of 36 percent to Rs 809 crores in Q2 FY23
Pfizer's shares have fallen nearly 13% this year, while the Nifty Pharma index has shed about 9%.
Earlier in the day, peer Zydus Lifesciences reported an 82.6% slump in second-quarter profit, hit by rising expenses.
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